Starbucks stock is added to Evercore ISI's TAP list ahead of earnings
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Evercore ISI added Starbucks Corporation (NASDAQ:SBUX) to its Tactical Action & Positioning list on Tuesday ahead of the coffee chain's earnings report next month.
Analyst David Palmer and team said a share price rally for the consumer discretionary stock is expected given the forecast for near-flat Starbucks F2Q China same-store sales growth and 3% to 4% transaction growth in the U.S. for the second half of the fiscal year. The firm has an Outperform rating on Starbucks (SBUX) and price target of $120.
SBUX is expected to report earnings during the first week of May. 21 of the last 23 EPS revisions from Wall Street analysts have been to the downward side.
Read the breakdown from Seeking Alpha analyst Geoffrey Seiler on why China is still key for Starbucks.