Starbucks plans to double stores in China in 5 years

Oct 20, 2016, 00:10
Starbucks plans to double stores in China in 5 years

The price target suggests a potential upside of 21.65% from firm's stock close price.

Starbucks Corporation (NASDAQ:SBUX) is planning to double the number of locations it has in China by 2021.

In addition to RBC Capital reporting its target price, a total of 23 firms have reported on the stock. According to these analysts, the Low Revenue Estimate for Starbucks Corporation is 5.51 Billion and the High Revenue Estimate is 5.77 Billion. As per Friday, July 22, the company rating was maintained by Wedbush. The company now has an average rating of "Buy" and an average target price of $66.04. Deutsche Bank analysts downgraded the stock to Hold from Buy.

Other hedge funds have also recently modified their holdings of the company. The company was downgraded on Thursday, September 3 by Vetr. The team feels its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Insiders at the company look pessimistic about the outlook as they seem to offload shares while they have -11.21 retreated so far this year. SBUX's value Change from Open was at -0.34% with a Gap of -0.26%. It has underperformed by 17.38% the S&P500. For the reporting quarter, equity analysts expect the stock to deliver $0.55 in earnings per share (EPS). Its up 0.05, from 0.97 in 2016Q1. Financial Architects Inc now owns 1,465 shares of the shipping service provider's stock valued at $222,000 after buying an additional 527 shares during the period. Moreover, Amp Cap Invsts Limited has 0.26% invested in Starbucks Corporation (NASDAQ:SBUX) for 696,194 shares. That compares with the mean forecast $5.33B and $0.49/share, respectively. The stock is down 0.74% on the day.

Shares of FedEx Corp. Capital Fund Mgmt owns 2.28M shares or 1.22% of their USA portfolio. Mckinley Capital Management LLC Delaware increased its position in Starbucks Corp.by 76.4% in the first quarter.

Insider Transactions: Since April 28, 2016, the stock had 0 insider buys, and 6 insider sales for $16.34 million net activity. On May 18, 2016, James G Jr Shennan (director) sold 50,000 shares at $55.57 per share price, according to the Form-4 filing with the securities and exchange commission. BRADLEY WILLIAM W sold $700,281 worth of stock. The average volume stands around 8.56 million shares. Today, with stores around the globe, the company is the premier roaster and retailer of specialty coffee in the world. The Market Capitalization of the company stands at 76.97 Billion.

The coffee chain is looking to China to fuel the company's growth. It has a 29.43 P/E ratio. It also sells a range of coffee and tea products and licenses its trademarks through other channels such as licensed stores grocery and national foodservice accounts. The China Roastery will be similar to the one in Seattle where customers can watch coffee beans get roasted and sip coffee drinks. The Company operates through five segments: Beauty; Grooming; Health Care; Fabric & Home Care, and Baby, Feminine & Family Care.

Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality Arabica coffee. And in September it began selling its Teavana tea brand at its China locations.

On October 5, 2016 Staples, Inc. Wong was also listed as one of the 50 people shaping the future of the US and China relationship by Foreign Policy, and the Top 100 Chinese Business Women by Forbes China in 2015.

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