Halister News

(Bloomberg) -- Starbucks is a core holding in consumer stocks and is “successfully navigating seismic shifts in consumer behavior,” KeyBanc analyst Christopher O’Cull writes in a note, initiating coverage with an overweight rating and $68 PT.

• Shares indicated $59.60/$60.56 vs. $59.51 close
• O’Cull says SBUX is protecting market share with investments in beverage innovation, employee relations, and store design
• Sees same- restaurant sales poised to accelerate as SBUX addresses issues related to mobile ordering demand and as it undertakes a comprehensive brand strategy
• Also sees 15% long-term EPS growth as attainable, and says Street expectations may be too conservative

• SBUX has 28 buy ratings, 6 hold, 0 sells, average PT $67: Bloomberg data
• NOTE: June 14, Starbucks ‘In-Line’ Comps Not Enough For Margin Upside: Wedbush
• NOTE: June 8, Restaurant Stocks Initiated at Mizuho; Favors Intl Exposed Names

To contact the reporter on this story: Charlotte Chilton in New York at cchilton4@bloomberg.net To contact the editors responsible for this story: Nick Baker at nbaker7@bloomberg.net Beth Mellor