Oppenheimer is on the hot seat as its "top large-cap pick" preps to report FQ2 earnings next week and update guidance. Analysts expect Starbucks (SBUX +1.2%) to report revenue of $5.422B and EPS of $0.45.
"We anticipate a multifaceted SSS improvement cycle into the June quarter (and beyond) at an attractive valuation. This intriguing setup is against ’17/’18 EPS estimates already harnessed at the bottom end of its 15-20% targeted algorithm," writes the Oppy team.
"We see limited downside to the $54 level with a base case at $65 (and upside case at $72)."