Coffee chain Starbucks Corp.’s shares got a rating upgrade from BTIG, as the latest round of federal stimulus checks is expected to boost spending on restaurants that are set to re-open.
BTIG boosted its rating on Starbucks to buy from neutral, while maintaining its $130 price target. BTIG analysts mentioned in a note that the re-openings are faster than expected. They expect same-store sales to accelerate throughout the year.
Economic recovery, earnings upside and “broad geographic profile” led the analysts to become more optimistic om the shares.
According to data collected by BTIG, more than one-third of customers ages 18 to 24 say they would be willing to dine out once the restrictions have eased. Almost 30% of customers from age 25 to 34 expect to dine out after capacity limits get lifted.