Starbucks Corporation : Could make a good performance
By Lara Villeneuve
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
$53.9 | $0 | $50.9 | -100% |
From fundamental viewpoint, the company reported a second quarter better than expected with a net result 4.2% up to the consensus, in spite of the European weak consumption. Turnover should increase 13% for fiscal 2012 and net result will follow this growing movement. EPS is expected at USD 0.69, representing a 23% growth.
Technically the stock recorded a recent decline about 20% from its highest historical recorded in April. The security evolves now close to its USD 51.1 support, representing an optimal entry point. The 100 and 50-days moving average will cross close to USD 53 and this level could be a support area in the perspective of a new upward trend.
Starbuck is an interesting investment opportunity due to its current market price and the fundamental situation. Investors could take a buy position on this security with an objective at USD 55.6. A stop loss will be engaged at USD 50.9, below the short term support.