Benzinga | Oct 11, 2021 01:45PM EDT

Analysts Bullish On Starbucks, See Upto 21% Upside

* Deutsche Bank analyst Brian Mullan upgraded Starbucks Corp (NASDAQ:SBUX) to Buy from Hold with an unchanged price target of $127, representing a 14% upside.

* The analyst cited valuation for the upgrade following the stock's recent pullback.

* Mullan has a "reasonable degree of confidence that one can start to 'leg in' here and ultimately be rewarded for taking the risk."

* BofA analyst Sara Senatore reinstated coverage of Starbucks with a Buy rating and $135 price target, suggesting a 21% upside.

* Sara thinks the growth in the specialty coffee segment continues to outpace that of overall food service globally and in the U.S., but few concepts have been able to achieve as "meaningful" of scale as Starbucks.

* Senatore adds that she expects the impact of smaller concepts to be limited in the near term.

* Price Action: SBUX shares are trading higher by 0.07% at $111.3 on the last check Monday.