The 200-day moving average has emerged as support
Pumpkin spice connoisseur Starbucks Corporation (NASDAQ:SBUX) is enjoying a 2.4% lift this morning, trading at $88.70 after receiving an upgrade to "overweight" from "neutral," at J.P. Morgan Securities. The firm also hiked its price target by $4 to $90, citing a recent meeting with the company in which it was impressed by sales drivers and Starbucks' overall "growth at scale" agenda.
Today's upgrade looks like an extension of a trend started by RBC on Tuesday, making it the second upgrade for Starbucks this week alone. From a broader standpoint, analysts have been uneasy to bet big on the equity, with 13 of 21 covering firms sporting a tepid "hold" recommendation.
Starbucks stock has been working its way higher after pulling back to the $82 level in early November. Now up 37% year-to-date, the 200-day moving average has emerged as a fresh layer of support.
For those wanting to speculate on SBUX's next move with options, now might be an opportune time. The coffee concern's Schaeffer's Volatility Index (SVI) of 19% sits higher than just 20% of readings from the past year.