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.