Starbucks just got a jolt of caffeine.
Shares of the coffee chain gained more than 2% on Monday after analysts at Oppenheimer named the stock an "actionable buy idea" and raised their price target to $101 from $85.
Todd Gordon, founder of Tradinganalysis.com, agreed with the call and praises Starbucks' innovation during the coronavirus pandemic.
"Starbucks has done a great job embracing the drive-thru, curbside pickup technology, limiting that human contact in stores, and that loyalty program is really boosting their sales," Gordon told CNBC's "Trading Nation" on Monday.
Pointing to the charts, Gordon also sees Oppenheimer's price target call as very realistic for the stock.
"From a technical point of view, we've been kind of caught below this down trend resistance around $90, and if we could break out, we certainly should be able to get to that $101 price target," he said.
Starbucks shares have already gained 20% over the past three months. A move to $101 implies another 14% rally.
Chad Morganlander, portfolio manager at Washington Crossing Advisors, agreed that Starbucks is only just beginning to perk up.
"It has the investor profile that we like," Morganlander said during the same "Trading Nation" segment. "It has consistently grown, it's consistently profitable. It has the financial flexibility on its balance sheet as well. It's a rising dividend company that's reinvesting back into its business."
Starbucks is essentially flat on the year, but has climbed 77% since the March lows. Morganlander also credits the comeback to how the company has navigated the pandemic.
"It's been extraordinarily nimble in this time of Covid, and has reduced a tremendous amount of the friction in regard to getting their product to the consumer," said Morganlander.
International expansion could also pave the way for growth for the company and its shares, according to Morganlander.
"Roughly about 30% of Starbucks' revenues are outside the U.S. In particular, the emerging markets are where you have to focus your attention. We believe China will in 2021 be the major growth engine for Starbucks," he said.
Disclosure: Washington Crossing Advisors and Gordon hold Starbucks.
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