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Starbucks Stock Surge: TD Cowen Sees 13% Upside
14 May
Summary
- TD Cowen upgraded Starbucks stock to buy, predicting a 13% rise.
- Starbucks' 'Back to Starbucks' plan shows signs of success.
- Same-store sales are forecasted to increase by 4% in fiscal year 2028.
TD Cowen initiated coverage on Starbucks with a 'buy' rating, establishing a $120 price target. This represents a potential 13% increase from current trading levels.
The research firm cited numerous factors supporting positive sales revisions for Starbucks. These include planned labor investments and anticipated margin recovery. Additionally, projections for sales leverage and cost reductions contribute to the positive outlook.
Starbucks is expected to achieve a 4% increase in same-store sales for fiscal year 2028. This forecast exceeds the Street's consensus estimate of 3.4%.
The company's 'Back to Starbucks' initiative is reportedly in its early stages of operational revitalization in North America. This strategy aims to boost the bottom line and stock performance through enhanced marketing, menu innovation, and loyalty programs.
Signs of success are already evident, with Starbucks shares rising 26% year-to-date as of May 14, 2026. If this trend continues, it will mark the company's first annual gain since 2021.
TD Cowen's positive assessment contrasts with the broader Wall Street consensus, where a significant portion of analysts maintain a 'hold' rating on the stock.
