Starbucks price target raised to $125 from $118 at Deutsche Bank

Deutsche Bank raised the firm’s price target on Starbucks (SBUX) to $125 from $118 and keeps a Buy rating on the shares. Starbucks’ Q1 print was “solid,” with improving U.S. same-store sales, better-than-forecast International and China SSS, and better-than-expected margins, the analyst tells investors in a research note. The quarter and recent commentary should help reinforce the bull case that Starbucks is approaching an inflection, while the solid margin flow-through and cost saving efforts should help add confidence in the company’s run-rate earnings power, the firm says.