Investing.com — Starbucks (NASDAQ:SBUX) rose almost 5% after Stifel said the coffee purveyor should get more credit.
It’s one of the food chains that has most been disrupted by the coronavirus spread and subsequent stay-at-home order, said Stifel analyst Chris O’Cull, upgrading the stock to buy from hold, Benzinga reported. He upped his price target to $90 from $78. Shares have two buy ratings, 14 holds and no sells, according to data compiled by Investing.com.
Management has implemented quick and aggressive steps after breakfast sales dropped, cities emptied out and tourists stayed closer to home, O’Cull said. Starbucks has improved its drive-through locations, store layouts, and digital order and payment options.
“In our view, investors should look for companies willing and able to innovate quickly to address the challenges of the current environment,” O’Cull wrote in a note, according to Benzinga. “Despite its size, Starbucks has been able to accomplish this feat better than almost anyone in the restaurant industry.”
August mobile location data shows that August trends are improving, Stifel said.
The company reported better than expected sales and a smaller loss than estimated last month.