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Starbucks could continue to grow in China for a long time

Starbucks Corp. (SBUX) was upgraded to buy from hold at Deutsche Bank, with analysts anticipating growth in China for a long time to come. Analysts maintained their $127 price target. Deutsche Bank initiated Starbucks coverage last month. Analysts also expect Starbucks to return "a low to mid-teens percent of its equity market cap" in dividends and share buybacks over the next three years. On the third-quarter earnings call, Chief Executive Kevin Johnson said the company had reached more than 5,100 locations in China, and revenue grew 45% year-over-year. "These are still early days," Johnson said, according to a FactSet transcript. Starbucks stock is up 4% for the year to date while the S&P 500 index has gained nearly 17% for the period.

-Tonya Garcia

 

(END) Dow Jones Newswires

10-11-21 0918ET

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