Starbucks price target raised to $76 from $66 at Jefferies
Jefferies analyst Andy Barish raised his price target for Starbucks to $76 from $66 and reiterates a Buy rating on the shares. The stock closed yesterday up 6c to $66.88. The analyst says that despite investor fears about long-term unit growth and same-store-sales visibility, he is a believer in Starbucks' China business. He sees a "visible path" to development and sustained drivers with delivery, and estimates the country could generate revenue of $6.4B by fiscal year 2024. Starbucks should command a multiple of 14 times estimated 2020 EBITDA, in line with its recent historical average, Barish tells investors in a research note titled "Marching Onward in China; Buy for Attractive Global Total Returns." At the current valuation of 13 times EBITDA, he sees an "attractive" entry point.