Starbucks Stocks Lands Second Upgrade of the Week

Options also look attractive on the coffee name

Managing Editor
Dec 12, 2019 at 10:18 AM
facebook twitter linkedin

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.


Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

Schaeffer's Daily Bulletin Offer


Special Offers from Schaeffer's Trading Partners