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Investing.com – Starbucks (NASDAQ:SBUX) shares jumped 3% Tuesday after BTIG Research called it a ‘buy’ because of faster-than-anticipated reopenings.
Analyst Peter Saleh raised his view from a neutral rating. He called a price target of $130 on the stock, according to Seeking Alpha. They are currently trading at a 52-week high around $112.
BTIG expects the coffee chain to benefit from the faster-than-anticipated pace of restaurant reopenings, coupled with massive federal stimulus. It expects these to lead to upward earnings revisions for Starbucks.
In January, Starbucks guided for a global comparable store sales growth of 18% to 23%. BTIG called it “conservative.”
The checks from the Biden administration’s $1.9 trillion stimulus are soon going to be on the way, and with the vaccine rollout only expected to quicken, traders expect some of the money to go to discretionary spending such as coffee drinks.
