Do you believe in miracles? And unicorns? Because both are happening at Starbucks Corporation (NASDAQ:SBUX) right now.
Your social media feeds are no doubt plastered with images of the color changing, taste shifting, limited-edition Unicorn Frappuccino on offer — a light hearted play on the “unicorn food” trend that’s giving the coffee purveyor a big marketing tailwind. Coming just months after some political blowback from the political right (on the company’s immigration stance), the unicorn buzz is helping push the stock up and out of a five-month funk.
And as a result, shares look ready to make a run at the 2015 highs near $62.
Aside from fruity, sour, pink-and-blue flavored drinks — and the huge drive-thru lines that resulted at my local Starbucks — the stock has benefited from a number of analyst upgrades in recent days. On Tuesday, RBC Capital Markets noted easing year-over-year comparisons, a rich innovation pipeline and the potential for tax reform tailwinds. Stifel analysts upgraded the stock on Wednesday, assigning a $67 price target on anticipated multiple expansion on accelerating U.S. comp-store sales growth.
The company will next report results on April 27 after the close. Analysts are looking for earnings of 45 cents per share on revenues of $5.4 billion. Now is a great time to go long SBUX stock.
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