Starbucks (NASDAQ:SBUX) stock has made an impressive recovery in recent months, despite disappointing earnings and continued traffic headwinds. The central question for investors now is: Can Starbucks stock hit $108 in 2025? Some analysts believe the path is still open—though it may not be easy.
Recent Earnings Raise Concerns
Starbucks’ Q2 fiscal 2025 results, announced on April 29, highlighted several ongoing challenges. Revenue grew just 2.3% year-over-year to $8.76 billion—below the $8.82 billion expected by analysts. Same-store sales declined 1%, and U.S. transactions dropped 4%, revealing weakness in its core market.
China, its second-largest market, posted mixed results with a 4% increase in transaction volume offset by a 4% decrease in average ticket size. This signals a global shift in consumer behavior that Starbucks must adapt to.
To address these concerns, Starbucks shifted its focus from expanding cold-brew infrastructure to investing in labor. However, this pivot impacted margins. Adjusted operating margin shrank to 8.2%, and net income plummeted 50.3% to $384.2 million. EPS for the quarter fell to $0.34—well below the $0.48 analysts expected.
Starbucks Stock Forecast: Analyst Optimism Remains
Despite disappointing earnings, top Wall Street firms remain cautiously optimistic. Bernstein continues to back Starbucks stock with an “Outperform” rating and has raised its price target from $90 to $100. The firm cites increasing visibility around labor investments and improving margins as reasons to stay bullish.
Evercore ISI analyst David Palmer has also upped his price target to $105, citing confidence in the turnaround strategy under CEO Brian Niccol. Both firms agree that the groundwork for long-term growth is being laid—even if short-term pain persists.
In fact, Starbucks stock forecast models from several analysts project a sharp rebound in fiscal 2026, with EPS rising 20% to $2.99. For now, fiscal 2025 expectations remain muted, with EPS projected at $2.48—a 25% decline from the previous year.
Can Starbucks Reach $108?
Starbucks shares have rebounded 15% from post-Q2 lows and are trading near $95. Hitting $108 would require a 14% upside from current levels. That may seem ambitious given the recent financial underperformance, but it’s not out of reach.
The Street-high target for Starbucks stock forecast sits exactly at $108, suggesting analysts believe it’s achievable with successful execution of its strategy. If same-store sales stabilize and EPS returns to growth, investors could reward the company with a higher valuation multiple.
Starbucks currently trades at 38x forward earnings and 2.9x sales, both above the industry average. Those lofty valuations reflect investor belief in a long-term turnaround.
Dividend Still Attracts Long-Term Investors
While the short-term performance has been rocky, Starbucks still appeals to income-focused investors. The company pays an annualized forward dividend of $2.40, yielding 2.55%, and has increased its dividend for 14 consecutive years. The most recent quarterly dividend of $0.61 was paid on May 30.
This consistent shareholder return adds support to the bullish Starbucks stock forecast. Long-term investors may be willing to hold through turbulence, betting on a recovery in 2026 and beyond.
Final Thoughts on the Starbucks Stock Forecast
Starbucks is at a turning point. The labor investments and strategic pivots may not yield immediate results, but analysts remain confident in a recovery by 2026. The path to $108 in 2025 is possible, but not guaranteed. Investors should watch for improvements in same-store sales, margin recovery, and EPS stabilization.
For now, the Starbucks stock forecast is cautiously optimistic. Those betting on a return to growth could be rewarded—if the coffee giant can deliver.
