Tuesday, November 30, 2010

Starbucks (Nasdaq:SBUX) Shares Should Respond to Earnings Focus

Argus likes the strategy Starbucks (Nasdaq:SBUX) is implementing and sees the share price of the company growing as earnings increase.

They see same-store sales continuing to grow at they "restore earnings by slowing unit expansion, managing expenses, and implementing programs to increase traffic."

Argus, which maintains a "Buy" rating on Starbucks, raised their EPS estimates for full year 2011 from $1.46 to $1.50 and for full year 2012 from $1.75 to $1.80. That's above the Street consensus.

Starbucks closed Monday at $30.79, dropping $0.35, or 1.12 percent. Argus raised their price target on them from $38 a share to $39.

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