William Blair Reiterates Outperform On Starbucks Following Biennial Investor Day


In a research report published Friday, William Blair analyst Sharon Zackfia reiterated an Outperform rating on Starbucks (NASDAQ:SBUX), following the company’s Biennial Investor Day, which took place on Thursday, December 4, 2014. No price target was provided.

Zackfia noted, “At its biennial analyst day, Starbucks detailed its plan to nearly double its revenue by fiscal 2019 to nearly $30 billion, versus $16 billion last year, representing annual revenue growth of roughly 11% after adjusting for the pending acquisition of Starbucks Japan. If achieved, we estimate Starbucks would generate at least $5.50 in EPS by fiscal 2019, representing a more than doubling from last year’s EPS and a continuation of 15% to 20% annual EPS growth.”

The analyst concluded, “At 25 times our calendar 2015 estimate, we continue to view Starbucks as a core large-cap consumer holding given its resilient sales trends, strong global growth prospects, and high visibility on 15% to 20% annual EPS growth.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Sharon Zackfia has a total average return of 16.0% and a 70.0% success rate. Zackfia has a 27.3% average return when recommending SBUX, and is ranked #426 out of 3395 analysts.

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