From UndervaluedSecurities.com :
Starbucks (SBUX) is now depressed due to reduced sales per store basis and market saturation in the US. However, the shining light is in its international growth and profitability. SBUX has strong fundamentals with average free cash flow of around $400-500 million per year that most likely will grow in the future due to its international growth. Howard Schultz, Starbucks Chairman & CEO (yes, he has been back since Jan 2008; this is a good sign for shareholders as he owns tons of SBUX shares) passionately stated in Jan 2008 annual shareholder letter that he would focus on Starbucks international expansion and most importantly, rebuilding Starbucks brand loyalty in the US and globally. We believe his passion in addition to SBUX strong brand name and fundamentals. Our target price: $25 / share by end of 2008.
$17.05 (05/22/08)
