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SBUX Plans to go Plant-Based in Asia

The stock has tacked on over 14% in the last six months

Digital Content Manager
Sep 8, 2020 at 9:40 AM
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Starbucks Corporation (NASDAQ:SBUX) announced last night that it plans on rolling out more plant-based options in markets across Asia, including Hong Kong, Singapore, Taiwan, Thailand and New Zealand. The coffee concern will introduce products from Impossible Foods, Oatly, and Beyond Meat (BYND), as these brands look to expand into Asia. Starbucks stock is down with the broader market this morning, off 1.1% at $85.33. 

Today's dip comes just a few sessions after the stock peaked at a six-month high of $88.98. Since then, the equity has been on a slide, though underlying support at its 20-day moving average could keep some of these losses in check. In the last six months, SBUX is up 14.5%. 

Analysts still aren't totally convinced, with 12 of the 22 in coverage calling the security a "hold," compared to 10 "buy" or better ratings. Adding to this, the 12-month consensus price target of $82.77 is a 4.1% discount to Friday's close. 

Options players, on the other hand, have rarely been more bullish. This is per SBUX's 10-day call/put volume ratio of 5.25 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio stands higher than 93% of readings from the past year, suggesting long calls are much more popular than usual. 

 

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