Starbucks Price Target Raised To $89 From $76 At Jefferies

Jefferies analyst Andy Barish raised his price target for Starbucks (SBUX) to $89 from $76 and keeps a Buy rating on the shares.

The stock closed yesterday at $75.12.

Barish says that despite the emergence of "Third Wave" coffee competitors, his "data-driven overlap analysis" and various growth scenarios point to a limited impact on Starbucks' same-store-sales. The company's competitive advantages, namely its size, scale and technology, and its shift to more suburban growth should support its long-term targets, Barish tells investors in a research note.

The analyst raised his fiscal 2019 U.S. same-store-sales estimate to 4% from 3.3% and sees visibility to consistent 3%-4% sales and unit growth in the U.S.