NEW YORK (
rating was boosted to a buy today, on the expectation that the company's sales are improving.
Jefferies & Co. analyst Jeff Farmer said the coffee retailer has lowered costs more than forecast, which should lift its 2010 profit by 23 cents a share. He also upped his price target to $25 from $22.
In addition, Farmer notes, same-store sales will most likely increase next year due to new prices and some combo deals.
Earlier this month
to $150 million, or 20 cents a share, compared with $5.4 million, or 1 cent, in the year-ago period.
And while its same-store sales at the time slipped by 1%, the company said more customers were returning to stores.
Looking ahead, Starbucks expects to see EPS 15% to 20% higher than fiscal 2009 earnings of 80 cents a share.
-- Reported by Jeanine Poggi in New York
Follow TheStreet.com on
and become a fan on
Copyright 2009 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.