Starbucks Remains One Of The 'Most Compelling, Forward-Thinking Concepts'

Starbucks Corporation (NASDAQ: SBUX) hosted on Wednesday its Investor Day presentation, which prompted Peter Saleh of BTIG Research to reiterate a Buy rating and $64 price target.

According to Saleh, the coffee chain remains one of the "most compelling and forward-thinking concepts," given its multiple opportunities for continued growth despite its already large footprint. Specifically, the analyst highlighted:

1. The company's "aggressive" store expansion with the ultimate objective of opening 12,000 new stores across the world by fiscal 2021.
2. The geographic expansion of its digital platform.
3. The expansion of the premium Roastery and Starbucks Reserve concepts which will "elevate" the brand globally.

Meanwhile, Saleh noted that Starbucks won't ignore its traditional format store and plans to aggressively develop its footprint in key markets across the United States and China as well as fast growing markets including Japan.

Saleh also argued that Starbucks' increased focus on Starbucks Rewards, including simplifying the sign-up process, could result in greater adoption of the program. This is important since loyalty guests spend as much as 70 percent more after joining the loyalty program.

Finally, Saleh argued that Starbucks' forecast of a mid-single-digit comp growth, 10 percent revenue growth and up to 20 percent earnings per share growth through fiscal 2021 is "achievable and consistent with investor expectations" and in line with the company's prior targets.

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