Starbucks Corp (SBUX  ) shares are trading higher on Thursday as buyers keep leaning into the turnaround narrative after a recent quarterly beat and improving store-traffic commentary. Starbucks is also getting a fresh analyst tailwind after TD Cowen upgraded the stock to Buy and lifted its target to $120 from $106. What Is Driving Starbucks Stock Higher?

The latest leg higher follows a second-quarter beat, with revenue of $9.53 billion and adjusted EPS of 50 cents topping consensus calls for $9.13 billion and 42 cents, alongside an operating margin of 9.4% versus 8.2% expected. Management also pointed to the best traffic in three years, helping reinforce the idea that execution is improving.

Starbucks is getting incremental support from TD Cowen's move to Buy and a $120 target, which frames the post-earnings rally as more than a one-day squeeze. The call also stands out because the stock finished Wednesday at $105.95, leaving clear room versus that $120 level.

Starbucks Stock: Key Levels To Watch

Starbucks is pressing into its 52-week high zone, with the current price just below the $108.05 peak, so the next question is whether it can hold above the prior breakout area instead of slipping back toward earlier consolidation. Trend structure remains constructive, with shares trading 5.2% above the 20-day SMA ($102.43), 9.8% above the 50-day SMA ($98.20), and 19% above the 200-day SMA ($90.56).

For momentum, MACD is above its signal line and the histogram is positive, which typically points to improving upside pressure versus the prior downswing (in plain English: buyers are gaining control relative to the recent baseline). The golden cross that formed in January (50-day SMA above the 200-day SMA) adds a longer-term tailwind, but the stock is also extended enough that pullbacks toward trend support can show up quickly if momentum cools.

  • Key Support: $103.00 - a nearby level where buyers previously stepped in, sitting close to the short-term trend area (near the 20-day moving average zone)
What Is Starbucks And How Does It Operate?

Starbucks stands out as the world's biggest and most recognizable coffee brand, built around highly customizable beverages and a footprint of nearly 41,000 cafes in over 80 countries. About 52% are company-operated, with the rest run by licensees, which gives the model a mix of direct store economics and royalty-like revenue streams.

The company spans North America (74% of revenue as of the end of fiscal 2025), international (21%), and channel development (5%), with revenue coming from stores, licensee royalties, equipment and product sales, ready-to-drink beverages and packaged coffee.

Starbucks Benzinga Edge Scorecard Analysis

Below is the Benzinga Edge scorecard for Starbucks, highlighting its strengths and weaknesses compared to the broader market:

  • Momentum: Bullish (Score: 72.11) - The stock is showing strong trend persistence versus the broader market.
  • Value: Weak (Score: 15.71) - Valuation looks stretched, which can limit upside if growth expectations cool.
  • Growth: Weak (Score: 19.06) - The market is not scoring Starbucks as a high-growth name right now, raising the bar for execution.
The Verdict: Starbucks's Benzinga Edge signal reveals a momentum-led setup with a premium valuation profile. For longer-term investors, that often means the trend can keep working, but entries tend to matter more-pullbacks toward support may offer cleaner risk/reward than chasing near the 52-week high.

Starbucks Shares Edge Higher Thursday Morning

SBUX Stock Price Activity: Starbucks shares were up 1.61% at $107.66 at the time of publication on Thursday, according to Benzinga Pro data.