- Deutsche Bank raises its rating on Starbucks shares to buy from hold, predicting improving sales growth.
- The firm increases its price target for Starbucks to $69 from $59, representing 15 percent upside from Friday's close.
Investors should buy Starbucks because its menu improvements and technology investments will drive future sales higher, according to Deutsche Bank, which raised its rating for the coffee chain to buy from hold.
"Starbucks remains largely a one-of-a-kind company … Recent U.S. SSS [same-store sales] improvements, refocused operations and the prospects for the coming years gives us reasons to be optimistic about the long-term story," analyst Brett Levy wrote in a note to clients Monday. "Starbucks remains a standout operator and performer that should separate itself from its peers through ongoing menu innovation, its technology initiatives, and a focusing on the in-store experience, in our opinion."