BUZZ - Market View: Starbucks Brings Growth Optimism

October 30 - ** Starbucks SBUX.O reported annual profits (link) on Thursday that exceeded Wall Street expectations and announced a $1 billion share buyback program, indicating the market's confidence in CEO Brian Niccol's comprehensive reforms at the coffee chain are starting to show results.

** Shares of the coffee chain rose nearly 1% in pre-market trading to $106.5

Glass Half Full

** Morgan Stanley (maintains "Overweight" rating, target price: $116) said SBUX will continue to implement and expand its strategy through fiscal year 2027, with sustained same-store sales growth and customer traffic as crucial factors, and believes the company still has further growth opportunities.

** TD Cowen (rating "Buy", target price: $120) expects SBUX to focus more on the afternoon business through new drinks and marketing campaigns, while non-caffeinated refreshing beverages may help boost engagement among younger customers.

** Gordon Haskett ("Hold", target price: $114) believes many of SBUX's operational, cost control, and revenue growth drivers will continue to play a role in fiscal year 2027.

** Morningstar (fair value: $89) noted: "Despite a challenging macro environment, Starbucks' investments in store renovation, service, menu innovation, and marketing have strengthened its premium positioning and driven sales growth."

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