UPDATE: Citigroup Raises PT on Starbucks Following F3Q13 EPS Report

In a report published Monday, Citigroup analyst Gregory R. Badishkanian reiterated a Buy rating on Starbucks (NASDAQ: SBUX), and raised the price target from $70.00 to $84.00.

In the report, Citigroup noted, “F3Q13 EPS was 55c vs. the FC est of 53c, on revs of $3.74B vs. FC of $3.72B. A favorable tax rate relative to our modeling benefitted EPS by 1-2c by our est. SSS were +8 globally (driven by 7% traffic growth) vs. FC of 5.7%. Op margin was 16.4% vs. FC of 15.8% driven by sales leverage and lower coffee costs. We believe the strong SSS trends and solid outlook should be perceived positively by investors.”

Starbucks closed on Friday at $72.94.