Will Starbucks Shares Reach $108 by 2025?
Starbucks Corporation, the globally renowned coffee chain, has released its fiscal 2025 Q2 results, with the report failing to inspire the utmost confidence but maintaining a generally positive outlook. Despite facing challenges since CEO Brian Niccol took the helm, the company remains optimistic about the long-term opportunities.
The Q2 results showed a 50% year-on-year (YOY) plunge in Earnings Per Share (EPS) to $0.34, falling short of analysts' forecast of $0.48. Revenue came in at $8.76 billion, up 2.3% YOY but below the expected $8.82 billion. The adjusted operating margin contracted sharply, down 460 basis points to 8.2%. The same-store sales picture offered no relief, falling 1% during the quarter.
However, analysts remain optimistic about Starbucks' future. Most maintain a "Buy" or "Outperform" rating. Among 32 analysts, 15 rate Starbucks as a "Strong Buy", with a consensus average price target around $97 to $100, suggesting a modest upside of about 2.8% to 5.9% from recent prices. Bernstein and Evercore ISI have raised their price targets to $100 and $105 respectively, citing labour initiatives, margin stabilization, and a progressing earnings recovery. The street-high target reaches $108, implying about a 14% potential gain.
Investor sentiment and market reaction have been favourable towards Starbucks. The stock has performed well in 2025, up approximately 3.1%, and nearly 18% over the past year, reflecting improving investor confidence amid the company’s ongoing turnaround efforts.
Starbucks is rolling out new technology solutions such as the generative AI-based Green Dot Assist platform in partnership with Microsoft, expected to enhance customer experience and operational efficiency starting fiscal 2026. However, investors should be mindful that labour cost investments pulled forward could weigh on near-term margins, though traffic trends are expected to improve faster because of this investment.
Looking ahead, some forecasts predict Starbucks stock price could reach around $110 to $111 by the end of 2025, with a longer-term outlook showing potential stock appreciation exceeding 50% over several years.
In conclusion, the current outlook on Starbucks stock is favourably biased, with analysts recognising the company’s ongoing turnaround and innovation efforts, though some caution remains regarding near-term costs. The consensus suggests moderate upside potential over the next year, supported by positive earnings prospects and improving operational momentum.
References: [1] MarketWatch, "Starbucks stock falls as Q2 earnings miss expectations, but CEO remains confident in long-term opportunity," 29 April 2025. [2] Yahoo Finance, "Starbucks Q2 Earnings Preview: What to Expect," 28 April 2025. [3] The Motley Fool, "Starbucks Stock Price Prediction: Where Is the Coffee Giant Headed?," 2 May 2025. [4] CNBC, "Starbucks stock rises after Q2 earnings: What analysts are saying," 29 April 2025.
Investors remain optimistic about the future of Starbucks' business, with most analysts maintaining a "Buy" or "Outperform" rating, suggesting a moderate upside potential over the next year. The Q2 results showed challenges, but the company's ongoing turnaround and innovation efforts, such as the implementation of new technology solutions, are recognized as promising for the long-term finance and investing prospects of Starbucks.
