By JBizNews Desk- April 29 8:27am
Starbucks Corporation (NASDAQ: SBUX) is riding a fresh wave of bullish momentum Wednesday following a blowout second quarter that sent shares surging in after-hours trading — and now Wall Street is debating whether the stock can push well beyond $100 toward targets as high as $130.15
The Quarter That Changed the Conversation
Starbucks reported Q2 fiscal 2026 adjusted earnings per share of $0.50, beating estimates of $0.43 and rising from $0.41 in the year-ago period. Global same-store sales grew 6.2%, crushing Wall Street’s forecast of around 3.7-4%. Revenue came in at $9.53 billion, topping analyst estimates of roughly $9.14-9.16 billion — an approximately 8-9% year-over-year gain.21
U.S. same-store sales climbed 7.1%, driven by a roughly 4.3-4.4% jump in transactions — marking the second straight quarter of traffic growth for Starbucks’ U.S. cafes and signaling that the turnaround led by CEO Brian Niccol has taken hold.25
Niccol told investors the company plans to focus on sustaining the momentum and making results repeatable and durable, while delivering a healthy cost structure that supports profitable growth.
Guidance Raised — An Outlier in a Cautious Market
For fiscal 2026, Starbucks now expects global and U.S. same-store sales growth of at least 5%, up from its prior projection of 3%. The company also raised its adjusted EPS forecast to a range of $2.25 to $2.45, from a previous range of $2.15 to $2.40.1
With few companies choosing to raise full-year outlooks amid the current macroeconomic backdrop, Starbucks stands out as a notable outlier.
Where Analysts Stand
The post-earnings analyst reaction was swift and broadly positive:
- Evercore ISI analyst David Palmer raised his price target to $115 from $110, maintaining an Outperform rating.
- Bank of America raised its price target to $130 from $120 — the most aggressive call on the Street.5
- Wells Fargo analyst Zachary Fadem maintained a Buy rating and set a price target of $115.
- Stifel analyst Chris O’Cull maintained a Buy rating and raised his target to $115.
- JP Morgan analyst John Ivankoe raised his target to $100, maintaining Overweight.
Not everyone is rushing to upgrade. Jefferies analyst Andy Barish raised his target to $95, maintaining a Hold rating. DA Davidson reiterated a Neutral rating with a $97 price target.
The Stock Today
SBUX was trading around $102 in post-earnings action Wednesday, with a market cap of approximately $110.84 billion, a P/E ratio near 81, and a dividend yield of about 2.5%. The stock’s 52-week range runs from $75.50 to $104.82. At current levels, BofA’s $130 target implies significant upside, while the $115 targets suggest roughly 12% potential.16
The Bull Case and the Risks
Niccol has been adamant that once he fixes top-line growth, earnings would follow — and this quarter delivered proof. The company is targeting 13.5% to 15% operating margins in fiscal year 2028.
China remains a drag, with same-store sales growing just 0.5%. The company has adjusted its reporting there via the joint venture with Boyu Capital.
Macro headwinds like elevated gasoline prices persist, though Niccol noted customers still view Starbucks as a worthwhile small indulgence.
With the turnaround thesis gaining real traction, the question for investors is no longer whether Niccol’s “Back to Starbucks” reset is working — it clearly is. The real debate is how much of that optimism is already priced into a stock trading at elevated multiples.
JBizNews Desk
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