Note

Starbucks Corp.: the new head of the company will present a long-term development plan by the end of the year

· Views 15



Starbucks Corp.: the new head of the company will present a long-term development plan by the end of the year
Scenario
TimeframeWeekly
RecommendationBUY STOP
Entry Point99.15
Take Profit107.00
Stop Loss95.00
Key Levels84.60, 94.20, 99.10, 107.00
Alternative scenario
RecommendationSELL STOP
Entry Point94.15
Take Profit84.60
Stop Loss98.00
Key Levels84.60, 94.20, 99.10, 107.00

Current trend

The shares of Starbucks Corp., one of the largest companies that owns the coffee shop chain of the same name, are trading in a correction trend at 97.00.

Investors are trying to predict how the change in top management will affect the recovery of economic indicators. Recall that the post of CEO was taken by Brian Niccol, who previously worked in a similar position at Chipotle Mexican Grill Inc., one of the most successful American companies in the fast food segment. Analysts expect that by the end of the year, he will present a long-term plan for the development of the Starbucks brand, in which the key steps will be to increase sales volumes.

Against this background, Baird analysts maintained a positive assessment, confirming the rating of the securities above the market, with the target price of 110.0 dollars, confirming the potential for network expansion, which may mean stable year’s growth of 3.0–4.0%.

The financial report is due on October 31: according to preliminary estimates, revenue will increase from 9.10B dollars to 9.30B dollars, and earnings per share (EPS) will reach 1.04 dollars, the first excess of the 1.00 dollars profit indicator this year.

Support and resistance

On the daily chart, the trading instrument is moving in a corrective uptrend, being in a channel with dynamic boundaries of 100.00–92.00.

Technical indicators strengthen the buy signal: the EMA oscillation range on the Alligator indicator is expanding, and the AO oscillator histogram is forming corrective bars in the buy zone.

Resistance levels: 99.10, 107.00.

Support levels: 94.20, 84.60.

Starbucks Corp.: the new head of the company will present a long-term development plan by the end of the year

Trading tips

Long positions may be opened after the price rises and consolidates above 99.10, with the target at 107.00. Stop loss — 95.00. Implementation period: 7 days or more.

Short positions may be opened after the price falls and consolidates below 94.20, with the target at 84.60. Stop loss — 98.00.


Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.

FOLLOWME Trading Community Website: https://www.followme.com

If you like, reward to support.
avatar

Hot

No comment on record. Start new comment.