Starbucks "buy"

23.03.07 - McAdams Wright Ragen

NEW YORK, March 22 (newratings.com) - Analyst Dan Geiman of McAdams Wright Ragen reiterates his "buy" rating on Starbucks Corporation (SBUX). The 12-month target price is set to $44.

In a research note published yesterday, the analyst mentions that the company has pointed out that it plans to open a minimum of 10,000 new stores in the forthcoming five years and also increase its store base by more than 100% over the forthcoming four-to-five years. Starbucks has reaffirmed its FY07 guidance, indicating expanding margins throughout the year, the analyst says. According to McAdams Wright, with an improvement in the margin performance, the company?s earnings growth is likely to accelerate going ahead.