Jul 10, 2024
Hot Stocks 🔥

Starbucks Could Increase In Value By 23% | Nemo

Name of opportunity: 👀

Starbucks Corporation

On the up: ⬆️

Starbucks Corporation could increase in value by 22.74% over the next year, according to analysts. Analysts predict the price of Starbucks Corporation will increase from $72.59 to a target price of $89.39 in the next 12 months - which would mean that you could earn $227.42 on an investment of $1000, if they are correct. 

How hot is this investment opportunity? 🔥🔥🔥

Starbucks is a dividend stock that has increased its payout to investors every year since 2010, so there is a good chance that this trend could continue. Starbucks Corporation’s dividend yield is considered ‘Above Average’ at 3.02%. If you invested $1000, you would be paid $30.20 a year in dividends (based on the last 12 months).

However, the stock is technically considered a ‘Hold’ right now, and it has been on a downward trajectory - it has dropped in value by 22.37% in the past 6 months.

So if the stock did rise by as much as has been predicted, it would be a restoration of its value 6 months ago. Its current low stock price has been said to be partly a result of struggling sales figures. However, its financial health overall is considered to be ‘Above Average’ by analysts. 

Starbucks announced a plan two days ago to amp up its use of technology to help identify the bottlenecks that are causing long wait times in online orders. The CEO announced two months ago that abandoned carts were an issue, with customers identifying long wait times as a key reason to cancel their order. The company also said it would be retraining baristas in more efficient ways to prepare drinks, such as steaming milk before using the espresso machine.

More reasons some analysts think it could recover include its ambitious digital strategy, combating fluctuating demand with a digital loyalty programme. The brand has also introduced its Starbucks Reserve programme, which includes premium destinations in major US cities that offer cocktails and a dining menu. Starbucks Reserve has also opened the doors of the Seattle roastery, offering tours to visitors where they can see coffee being prepared up close, from bean to cup. 

Hot cup of java: ☕

Starbucks Corporation is a multinational chain of coffeehouses, based in the US with 38,000 stores worldwide. It is the world’s largest coffeehouse chain and operates in over 80 countries. Starbucks was founded in 1971 in Seattle. Prepared drinks are also available in grocery stores, and merchandise such as branded coffee cups is also sold by the company. 

Which neme?: 🔍

‘Food and Drink’, ‘Popular Dividend Stocks’

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Han Tan

Han Tan is a seasoned financial journalist and news presenter renowned for his expertise in global markets. With a career highlighted by interviews with prominent figures and recognition from major media outlets like CNN and Reuters, he delivers insightful analysis on market news and macroeconomic trends to clients and international audiences. Han's sharp commentary on currencies, stocks, and commodities is familiar to viewers of Bloomberg TV Malaysia, BFM 89.9, and NTV7, cementing his sterling reputation in the industry.