Morgan Stanley Raises Starbucks Price Target Following Strong Q4 Margin Expansion
Morgan Stanley analyst Brian Harbour has raised the 12-18 month price target for Starbucks (SBUX) to $116 from $115. The upgrade follows fourth-quarter results that demonstrated significant margin improvement, with adjusted operating margins expanding 450 basis points year-over-year to 14.0%, exceeding analyst expectations of 12.7%. The growth was driven by a 5.2% increase in average U.S. ticket size and a 2.4% rise in customer visits. This increased spending stems from both higher pricing/delivery fees and improved product mix, such as customers pairing beverages with food items. CEO Brian Niccol noted that the company is currently ahead of schedule regarding its fiscal 2028 strategic goals.
Topics: analyst upgrade consumer spending earnings report operating margin