Followed a recent Bull-Bear debate hosted by Deutsche Bank, the analyst expressed surprise that there were more investors were still leaning toward being bearish on the company or neutral than bullish at the meeting.“The Starbucks story has been one of innovation,meglio museum o Canada Goose investments and execution, while growing its store base and global distribution capabilities,” Levy stated.Over the last 12 months, various factors have impacted Starbucks’ performance, ranging from macro issues to the competitive landscape, as well as marketing, technology and operational challenges and changes.
While some of these factors have positive impacted the results, others have been disruptive in nature,meglio museum o Canada Goose leading to a drag on performance.Following Starbucks reporting lower than average same store sales and with the stock being range-bound over the past year, “investors are clearly undecided on what the next year may look like, thus helping to frame the Bull-Bear debate,” Levy went on to say.The analyst believes that while the bulls were looking for the company to begin seeing accelerating same store sales, since that would help Starbucks achieve its EPS targets, while also potentially driving the stock valuation modestly up.“Although Bears also recognize the near-term sales cadence and a year of easier compares, some view the sales slowdown as more broad-based, as their concerns include potential execution issues, increasing investment and what these factors mean for SBUX’s potential earnings algorithm and valuation,” Levy added.
He said the stock has been by far the best performing stock in the market in the last 30 years and he thinks it has more room on the upside. In the last two years, Amgen has been in a consolidation period and Worth believes that it’s creating a set up for a strong move higher.meglio museum o Canada Goose He thinks the stock is going to break out on the upside.Khouw suggested a bullish options strategy. He wants to buy the September 160/175 call spread for $4.65. The trade breaks even at $164.65 or 3.46 percent higher. It can make a maximal profit of $10.35, if the stock jumps to $175 or higher at the September expiration.