How Starbucks Could Give Its Stock a Jolt

Starbucks didn’t deliver the caffeinated sales that Wall Street wanted in the first quarter. Now, the coffeehouse chain gets another chance to deliver a jolt when it reports second-quarter results after the bell on Tuesday.

Investors are predicting that the economic reopening will fuel a rally, and analysts are standing with them. Shares of Starbucks (ticker: SBUX) were down 1.4%, to $115.92 on Monday.

An end to the pandemic will help companies across the board, but analysts argue that Starbucks is an especially well-positioned recovery play since more people will be getting breakfast on the go as they return to offices and schools, and its cafes will be open once again for dine-in customers. The outlook in China is also brightening.

Analysts are looking for Starbucks to earn 53 cents a share, on revenue of $6.78 billion. That’s up from EPS of 32 cents and revenue of $6 billion in the year-ago period.

And the upbeat mood carries over to the stock. Of the 33 Starbucks analysts tracked by FactSet, 58% rate the stock at Buy and 42% at Hold. There are no bearish ratings on the Street. The average analyst price target is $118.57.

Starbucks will hold a conference call at 5 p.m. EDT on Tuesday.