Analysts: Starbucks’s Expansion Opportunities and 3 More Research Notes to Look At
Starbucks (NASDAQ:SBUX): Bernstein believes that Starbucks has a strong expansion opportunity in Latin America, with the potential to add 2,350 stores there. The firm expects Starbucks’s overall EBIT to grow at a compound annual growth rate of 12 percent over the next five years, and it keeps a $90 price target as well as an Outperform rating on the shares.
Avago (NASDAQ:AVGO): Goldman added Avago to the Conviction Buy List due to strong wireless segment growth, a factor tied to LTE penetration, dividend increases, and management incentives from the new stock compensation package; Avago shares are Buy rated and hold a $54 price target.
Caterpillar (NYSE:CAT): Longbow’s October North American Caterpillar dealer survey indicates that demand continues to improve and construction sales are up, with strength extending across most end markets; the firm rates Caterpillar shares a Buy, with a $104 price target.
Mylan Pharmaceuticals (NASDAQ:MYL): The Food and Drug Administration issued a warning letter to an India-based company, Agila, that Mylan has agreed to buy, a development that BMO Capital believes should cause investors to question Mylan’s credibility; the firm disputes whether Mylan will be able to cancel the deal, and it thinks the FDA may issue an import ban on Agila’s products. BMO keeps an Underperform rating on Mylan.