Piper Jaffray Boosts Price Target on Starbucks: What It Means for Mutual Fund Investors (SBUX)
Shauna O'Brien Dec 23, 2014
Inside the Analyst Move
According to the analyst, “Starbucks remains an elite global consumer brand with highly attractive core business fundamentals that allow for substantial future growth opportunities across its portfolio. From a stock perspective, SBUX shares are favorably positioned within our “Next Layer” theme work whereby we identify the perfect “recipe” for a restaurant stock as one that combines Brand Equity + Asset-Light Growth + High Margin Licensed Sales. Further, the company’s strong cash flow generation support continued reinvestment into the business and an ongoing commitment to capital allocation.”
Fairly Valued Stock with Low Competition
Mutual Funds to Watch
|VTSMX||Vanguard Total Stock Market Index||1.59%|
|VFIAX||Vanguard 500 Index||1.07%|
The Bottom Line
Shares of SBUX are up 4% YTD.
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