Stifel Nicolaus upgrades Starbucks (NASDAQ:SBUX) to a Buy rating from Hold on a positive view for the chain's comparable sales track.
The firm sees U.S. comparable sales growth of at least 5% to 6% for the next four quarters beginning in FQ3 after coffee giant turns in around a 3% gain for the current quarter. Global comparable sales are seen rising at a mid-single-digit pace this fiscal year.
Looking further down the road, Stifel thinks Starbucks can expand its ready-to-drink and packaged coffee/tea businesses.
SBUX +1.37% premarket to $59.85 vs. a 52-week trading range of $50.84 to $61.43.