International investment bank RBC Capital Markets is bullish on Starbucks because of the global expansion opportunities that still exist.
By Bean Counter, on Thursday, September 14th, 2006
Scott Reeevs on Forbes.com writes about RBC Capital Markets’ “outperforming” rating for Starbucks:
“Large international growth opportunities remain, such as China, India, Brazil and Russia,” wrote RBC analyst Larry Miller in a new research report. “We also see same store sales growth within the company’s targeted 3% to 7% annual range.”
The analyst said Starbucks (nasdaq: SBUX - news - people ) could become a $100 billion capitalization company, or about four times its current size, “in time.”
Especially if we’re hit by massive inflation.
All kidding aside, there are a lot pratfalls out there, especially in developing countires like India and China, where foreign companies can easily offend local sensibilities or stir up resistance that’s not easily quelled. Actually, it can happen anywhere.