Stifel has reiterated a Buy recommendation on Starbucks Corporation stock and maintained a $105.00 price target in the wake of the company’s recent Investor Day presentation. The shares are trading at $91.46, below Stifel’s target, and InvestingPro data referenced in the company filings indicates analyst price targets across the market run from $67 to $120, implying a range of valuations among sell-side firms.
The research note from Stifel signals confidence in Starbucks’ strategic plan, which sets out objectives to drive revenue growth above 5% and to lift the company’s EBIT margin into a 13.5% to 15.0% band by fiscal year 2028. Starbucks itself reported 4.3% revenue growth over the past twelve months, a recent baseline that the company aims to accelerate through its multi-pronged approach.
Management’s growth playbook centers on what it calls a "high-velocity innovation flywheel" and broad global marketing campaigns. Among those initiatives is the "Hello Again" campaign, launched in fiscal year 2025, designed to preserve brand relevance for mass audiences while re-engaging lapsed customers. Stifel’s assessment is that these cultural and marketing efforts, when combined with operational moves, can convert improved brand affinity into higher transaction volumes and expanding margins.
Operational simplification and efficiency gains are a second pillar of the plan. Starbucks plans to roll out the proprietary Mastrena III espresso machine in fiscal year 2027. The company says the new equipment halves production time, which is intended to streamline store workflows and support faster throughput during peak periods.
Starbucks has also laid out specific fiscal 2028 financial targets. The company expects at least 5% consolidated net revenue growth and comparable store sales growth of 3% or more. Growth assumptions include a substantial store-expansion program: more than 2,000 new locations globally each year, of which roughly 400 are planned to be new U.S. company-operated stores. Management projects this expansion will add roughly 2% to 3% to consolidated revenue.
Following the Investor Day disclosures, other sell-side firms updated their views. TD Cowen raised its price target to $89 while retaining a Hold rating, citing clearer visibility on Starbucks’ 2028 EPS guidance. JPMorgan kept an Overweight rating with a $95 target, reflecting optimism about the company’s turnaround initiatives. Piper Sandler increased its target to $103 after the presentation, and Bernstein reiterated an Outperform rating with a $100 price objective, characterizing the company’s management actions as "best-in-class." Collectively, these revisions indicate broadly positive analyst sentiment toward Starbucks’ outlook.
What this means
- Stifel’s reaffirmation underscores analyst support for Starbucks’ ability to execute on both topline growth and margin improvement goals.
- Operational investments such as the Mastrena III machine are positioned as key drivers of efficiency and throughput.
- Store expansion targets are material to revenue guidance, with new openings projected to contribute meaningfully to consolidated sales.