Starbucks' Shares Hits New 52-Week High on Upgrade (SBUX)
Starbucks Corp. (NASDAQ:SBUX) hit a new 52-week high this morning of $25.37 thanks to an upgrade by UBS. SBUX shares are now back at their 2007 levels, the world is in love with Starbucks Coffee again.
Today UBS upgraded Starbucks Corp (SBUX) to Buy from Neutral and raises its earnings forecast on higher sales, benign costs and the company's ongoing productivity programs. UBS set a $29 target price on Starbucks shares, an increase of $2.
UBS increases FY10 EPS from $1.09 to $1.14 and FY11 EPS estimate from $1.27 to $1.34, citing continued momentum from sales and profits. However, risks from McDonald's (NYSE: MCD), slowing VIA growth and commodity price spikes still remain.