Starbucks, Toyota Hit 52-Week Highs
Starbucks' price target analysts was raised to $68 from $55 on Thursday by analysts at Piper Jaffray.
"The conclusion from our five-year earnings power analysis is that all roads lead to (much) higher earnings," Piper Jaffray analysts wrote in a report Thursday. "Earnings growth should also accelerate and remain sustainable in the 20%+ range. As it relates to the single-serve arena, the company is unique vs. peers in that it now owns both the content and distribution and we believe SBUX shares will benefit as the company transitions from the 'stealth' way to clear and obvious way for investors to play the premium single-serve opportunity."
Shares of Starbucks hit a 52-week high Friday of $53.37. The stock's 52-week low of $33.72 was set on Aug. 9.
Starbucks has an estimated price-to-earnings ratio for next year of 23.32 times; the average for restaurant and bar companies is 20.21. For comparison, Dunkin Brands (DNKN) has a lower forward P/E of 22.32; Peet's Coffee & Tea (PEET) has a higher forward P/E of 31.05.
Twenty of the 29 analysts who cover Starbucks rated it buy. Eight analysts gave the stock a hold rating and one rated it sell.
TheStreet Ratings gives Starbucks an A+ grade with a buy rating and a $66.11 price target. The stock has risen 15.64% year to date.
"Despite some progress, we continue to have two concerns for Toyota," Deutsche Bank analysts wrote in a March 2 report. "One concern is growth. There are no current plans to expand output capacity in N. America despite, on our assumptions, 95% capacity utilization in FY3/13e. At the peak, Toyota was importing about 45% of N. American sales. We assume a 30% rate in FY3/12 but local capacity for models like the RAV4 does not seem sufficient. The second is small cars. While Honda and Nissan have committed to small car capacity in Mexico, Toyota continues to resist this focusing on Japanese output."
Shares of Toyota hit a 52-week high of $85.85. The stock's 52-week low of $60.37 was set on Nov. 23.
Toyota has a forward P/E of 15.09; the average for car companies is 15.35. For comparison, Honda(HMC) has a lower forward P/E of 11.99.
Analysts were split on Toyota Motor with one rating it hold and another giving it a sell rating.
TheStreet Ratings gives Toyota Motor a C+ grade and hold rating. The stock has risen 29.52% year to date.
-- Written by Alexandra Zendrian