Starbucks Corporation (SBUX): TD Cowen Upgrades to Buy with Price Target of $120

Starbucks Corporation (SBUX) has received a notable upgrade from TD Cowen, with analyst Andrew M. Charles initiating a Buy rating on May 14, 2026, alongside an increased price target of $120. This adjustment not only reflects confidence in the company’s growth trajectory but also signals potential upside for investors who may be considering an entry into the stock at its current price of $105.95.

Recent Price Action

Starbucks shares have demonstrated a resilient trading pattern, reflecting a change of approximately 1.70% in the last session, closing at $105.95. Despite a significant 52-week high of $126.40, the stock remains down by 16.5% from this peak, while its 52-week low stands at $29.91. The trading volume today reached around 3.4 million shares, a stark contrast to the average volume of approximately 7.7 million, indicating a lower level of trading activity amid ongoing market fluctuations. The stock’s beta of 1.009 suggests volatility that closely mirrors the market, pointing to a steady yet engaging trading environment for investors.

Historical Performance

Over the past 30 days, Starbucks has seen a commendable monthly performance growth of nearly 9.92% and a quarterly increase of roughly 9.72%. However, over the last year, the stock has faced challenges, resulting in a slight decline of 0.82%. The weekly volatility has been registered at 2.09%, while the monthly volatility stands at 2.54%, reflective of the stock’s dynamic movements in response to broader market conditions. With an average daily trading volume of about 6.9 million shares over the past 10 days and 7.8 million over three months, investor sentiment appears cautiously optimistic, balancing between growth potential and historical underperformance.

Earnings Analysis

Starbucks reported an earnings per share (EPS) of $0.50 for the latest quarter, outperforming consensus estimates which had projected an EPS of $0.425. This 17.56% positive surprise highlights a robust earnings performance that contrasts with the prior quarter’s disappointing results, where the actual EPS of $0.56 fell short of analysts’ expectations of $0.586. Such fluctuations in EPS underscore the unpredictability in the company’s earnings attributes, suggesting that while recent performance is promising, investors should remain attuned to potential future discrepancies.

Analyst / Consensus View

The analyst consensus surrounding Starbucks demonstrates a somewhat balanced sentiment, evident from the total of 22 ratings compiled in the last 90 days. Out of these, 9 are classified as Buy, 12 as Hold, and just 1 as Sell. The average price target stands marginally above today’s trading price at approximately $105.86, with a highest target of $122 and a lowest of $87. These ratings illustrate a cautiously optimistic outlook, supported by the recent upgrade from TD Cowen and providing a clearer path for potential price appreciation.

Stocks Telegraph Grading Score

Currently, Starbucks holds a Stocks Telegraph (ST) score of 60, suggesting stable fundamentals and a positive investment profile. This score encapsulates various analyses pertaining to market health, indicating that Starbucks is positioned as a consistent player worthy of attention from growth-focused investors and those seeking exposure in the consumer discretionary sector.

Conclusion

For investors contemplating a position in Starbucks, the combination of recent upgrades, a solid earnings beat, and a favorable consensus rating paints a relatively optimistic picture. Given its current price and the potential for upside to the new target of $120, this stock may attract both growth-oriented and moderate-risk investors. While the recent performance introduces an element of risk — particularly in light of yearly declines — the strength indicated by the latest earnings report suggests that Starbucks could indeed provide long-term value if the company successfully navigates its market challenges. As always, investors should maintain awareness of market volatility and shifts in consumer behavior, which could impact the stock’s trajectory moving forward.