Coffee retailer Starbucks Corporation (SBUX) on Thursday caught some continued bullish support from analysts at Oppenheimer.

The firm reiterated its “Outperform” rating on SBUX as well as its $62 price target, which suggests a 24% upside to the stock’s Wednesday closing price of $49.80.

An Oppenheimer analyst commented, “SBUX has rebounded 15% since 8/2′s bottom, but remains well-positioned for new capital and we reiterate our ‘top large-cap pick’ thesis. Near term, expectations have reset to healthy and beatable levels with potential upside if management sharpens focus on costs as comps remain in healthy ~5%+. Longer term, SBUX is entering 24 months of coffee cost benefits with F14 likely to be a major ‘flow-through year,’ all while a stuffed sales pipeline methodically unloads (Verismo, enhanced food, throughput, CPG, China, etc). Shares appear attractively valued at 1.0x PEG, given our expectation for 23% average EPS growth over F13 and F14.”

Starbucks shares rose 50 cents, or +1%, in premarket trading Thursday.

The Bottom Line
Shares of Starbucks (SBUX) have a 1.37% dividend yield, based on last night’s closing stock price of $49.80. The stock has technical support in the $45 price area. If the shares can firm up, we see overhead resistance around the $52-$53 price levels.

Starbucks Corporation (SBUX) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.

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