Cowen analyst Andrew Charles upgraded Starbucks (SBUX) to Outperform from Market Perform with a price target of $99, up from $77.
The analyst believes early signs of the U.S. recovery for Starbucks is "durable," aided by broadening digital access through expanded pay options for loyalty and 23% of U.S. stores adding curbside pick-up.
The pandemic presents new efficiency opportunities for the company's "Growth at Scale agenda" to drive 15% earnings growth in 2022 and 2023, Charles tells investors in a research note.
The analyst views Starbucks' risk/reward as compelling as his "bull/bear cases suggest 2:1 upside/downside ratio."
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