Currently, Starbucks (SBUX) has a few tailwinds going for it that could push the stock higher. We believe that SBUX will post another strong year for FY13 thanks to revenue drivers firing on all cylinders. According to the Street consensus, revenues are expected to grow 12.7% in FY13 versus FY12, which we think is possibly conservative given momentum in several other areas of SBUX’s business. Combined with growth in China, the expanded availability of the Evolution Fresh brand, and stronger market share in the single serve and core retail space, Starbucks looks attractive as a long right now. We think top- and bottom-line estimates will rise over the next three months.
From a quantitative setup, the stock is in bullish formation, with immediate-term TRADE and intermediate-term TREND support at $53.39 and $51.37, respectively. We remain long SBUX in our Real-Time Alerts.
