Are you looking to brew up your returns? Today RW Baird reiterated its Buy rating on Starbucks (SBUX) saying a big rally could be ahead.
The Halftime Report was joined by Baird analyst, David Tarantino, who broke down his reasons for believing in the stock. Tarantino says to look at Starbucks as a consumer staple: "We took a look at Starbucks relative to some of their large cap names in the consumer staples universe largely because Starbucks has a lot of staples like properties both from a qualitative perspective and financial metrics perspective."
David is also encouraged by the valuation: "Starbucks'valuation premium is now close to a five-year low." Lastly, he isn't concerned about other players saying "competition is not a big part of the story" and the company's internal fundamentals remain very healthy.
Baird has a $68 price target, a 25% upside from here.