Analyst Ratings January 26, 2026

Guggenheim Lifts Starbucks Price Target Ahead of Earnings and Investor Day

Analyst raises modestly while market price, divergent peer views, and upcoming events set the stage for volatility

By Avery Klein SBUX
Guggenheim Lifts Starbucks Price Target Ahead of Earnings and Investor Day
SBUX

Guggenheim increased its price target on Starbucks to $90 from $88 and kept a Buy rating as the coffee chain prepares for fiscal Q1 2026 results and an Investor Day. The stock is trading above the new target, recent analyst actions are mixed, and the company announced a quarterly dividend ahead of the scheduled disclosures.

Key Points

  • Guggenheim raised its Starbucks price target to $90 from $88 and kept a Buy rating; the firm increased 2027 and 2028 EPS estimates by $0.05.
  • Starbucks shares were trading at $97.62, above Guggenheim’s target, with a P/E of 59.58 and an RSI that suggests overbought conditions.
  • A range of analyst views persists: Mizuho raised its target to $95 (Neutral), Jefferies kept Underperform at $75, William Blair upgraded to Outperform, and BofA lifted its target to $114 (Buy).

Guggenheim on Monday adjusted its price target for Starbucks (SBUX) to $90.00, up from $88.00, and left its recommendation at Buy. The move comes just days before Starbucks reports fiscal first-quarter 2026 results and holds its New York Investor Day, events Guggenheim flagged as pivotal for management to clarify near-term and multi-year expectations.

At the time of the update, Starbucks shares were trading at $97.62, already above Guggenheim's revised target. The company’s reported price-to-earnings ratio stood at 59.58, and technical data cited by InvestingPro indicates the stock’s relative strength index is in overbought territory.

The timing of the estimate change coincides with a packed calendar for the company: fiscal Q1 2026 earnings are scheduled for Wednesday, January 28, followed by Investor Day on Thursday. Guggenheim highlighted Investor Day as an opportunity for CEO Brian Niccol to present the company’s plan for unit growth, same-store sales, margin recovery, and earnings-per-share trajectory over the coming years. The firm also said it expects commentary on in-store operations, marketing strategy, the product calendar, and unit expansion.

Guggenheim’s higher price target is tied to updated internal projections, including a $0.05 lift to its EPS forecasts for both 2027 and 2028. The analyst note did not alter the firm’s Buy stance despite the modest numerical change to the target.

Starbucks announced a quarterly cash dividend of $0.62 per share, payable February 27, 2026, to shareholders of record as of February 13, 2026. The dividend declaration arrived as the company prepares for its fiscal first-quarter report and the Analyst Day at the end of January.

Analyst opinion around Starbucks remains varied. Mizuho increased its price target to $95.00 and kept a Neutral rating. Jefferies reiterated an Underperform stance with a $75.00 target, signaling skepticism about the stock’s recent performance. Conversely, William Blair moved to upgrade the stock to Outperform, citing expectations for a domestic sales recovery. Bank of America Securities raised its price target to $114.00 and maintained a Buy rating, noting potential growth in China.

The shares have delivered a 15.92% return year-to-date, while analyst price targets in the streetwide range span from $67 to $115. That dispersion reflects differing views on the company’s near-term performance and longer-term growth prospects heading into the earnings report and Investor Day.


What to watch this week

  • Fiscal Q1 2026 earnings release on Wednesday, January 28.
  • Investor Day presentation on Thursday, where management is expected to address growth and margin plans.
  • Market reaction to updated analyst forecasts and the declared dividend.

Risks

  • Short-term market reaction to fiscal Q1 2026 results and Investor Day disclosures could be volatile for consumer discretionary and restaurant sector equities.
  • Divergent analyst forecasts and a wide range of price targets create uncertainty for investors assessing fair value in consumer retail and foodservice stocks.
  • Technical indicators, including an overbought RSI, may signal heightened downside risk if upcoming results or guidance disappoint the market.

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