Barclays’ top pick among US eateries to launch in 2023 is Starbucks stock ( NASDAQ:SBUX ).
Equity analyst Jeffrey Bernstein wrote in a note assessing the market on Thursday that “big and liquid” operators could outperform in the immediate future. Furthermore, despite worries about the worsening macroeconomic outlook, many major chains continue to have pricing power.
Bernstein says that Starbucks is a leading, large-cap, high-growth, global consumer firm with a strong retail and consumer products platform in the US, strong overseas growth driven by China, and the best-in-class digital platform. In our opinion, few other companies “provide proven, industry-leading growth at scale with scarcity value to justify the valuation.”
He went on to say that once the pandemic restrictions are lifted, China will be back to normal. As more US workers return to work, sales are expected to rise through 2023.
Bernstein explained that his optimistic view of the company is based on the fact that there hasn’t been a very bad recession. “That being said, Starbucks will definitely underperform for investors who think there will be a full-blown recession in 2023,” he warned.
Starbucks Stock: Starbucks Is Bracing For A Turbulent 2023
Starbucks Stock Outlook
Starbucks (SBUX -0.34%) is without a doubt one of the most influential consumer brands in the world, regardless of industry. The business operates on a global scale. And it has discovered a method to get customers to pay more for what would otherwise be a commodity. More on Motley Fool.
Since Starbucks went public ...
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