Analyst Price Target News: Starbucks, KB Home – June 24th, 2025

This week in analyst price targets: Starbucks denied a full sale of its China operations amid reports of a stake evaluation. KB Home beat Q2 EPS estimates and reaffirmed its FY25 outlook, drawing analyst price target increases.

By: Matthew Otto

Starbucks Denies Full Sale of China Operations Amid Reports of Stake Evaluation

Starbucks has clarified it is not currently considering a full sale of its China business, following a report by Chinese financial magazine Caixin that suggested otherwise. A company spokesperson stated, “I can confirm Starbucks is not currently considering a full sale of its China operations,” pushing back on claims that Starbucks had initiated a broad divestment.

According to Caixin, Starbucks began a formal process in May to gauge interest, distributing questionnaires to interested parties with inquiries covering topics such as corporate culture, sustainability practices, employee treatment, and potential transaction structures. Goldman Sachs is advising Starbucks in its evaluation process, though no decision has been made on whether to pursue a controlling or minority stake.

More than 20 institutions including private equity firms such as KKR & Co., FountainVest Partners, and PAG, according to Reuters have reportedly expressed interest. The discussions come amid mounting competitive pressure in China’s coffee market. With coffee prices from rivals such as Luckin and Cotti sometimes dropping below $0.7 per cup through subsidized delivery channels, Starbucks’ standard pricing of approximately $4.2 per cup has come under scrutiny.

In response to shifting consumer behavior and price sensitivity, Starbucks announced its first-ever price reduction in China earlier this month, lowering the cost of select non-coffee iced beverages by an average of $0.69. In 2023, Starbucks opened its $209 million Coffee Innovation Park in Kunshan.

Analysts Maintain Outlook Amid China Strategy Uncertainty

TD Securities analyst Andrew Charles reiterated a Hold rating and a $90 price target.
Evercore ISI analyst David Palmer raised the price target from $95 to $105.

Which Analyst has the best track record to show on SBUX?

Analyst Wendy Nicholson (CITI) currently has the highest performing score on SBUX with 2/5 (40%) price target fulfillment ratio. His price targets carry an average of $5 (6.25%) potential upside. Starbucks stock price reaches these price targets on average within 75 days.

Life Time to Open Flagship Location at Midtown Manhattan’s 10 Bryant in Early 2027

Life Time Group Holdings has signed a lease with Property & Building Corp. (PBC) to open a 52,000-square-foot athletic country club at 10 Bryant, a 30-story office tower at Fifth Avenue and 40th Street in Midtown Manhattan. The facility is scheduled to open in early 2027 and will occupy four levels with a street-level entrance on Fifth Avenue.

According to Life Time, the location will include six boutique studios, dedicated coworking space, and a full recovery suite with amenities such as cold plunges, compression therapy, and metabolic testing. The project adds to Life Time’s existing nine locations in New York City, including seven in Manhattan and two in Brooklyn.

The development forms part of PBC’s broader repositioning strategy for 10 Bryant. Eli Elefant, CEO of PBC, noted that the addition of Life Time aligns with the firm’s vision to transform the tower into a modern destination for wellness and work. According to PBC, the tower is situated in what the firm describes as the nation’s most densely concentrated office market, surrounded by over 300 million square feet of workspace and major tenants such as Amazon, Salesforce, and PwC. Daily commuter access is supported by three MTA lines with over 175,000 daily riders.

Analyst Maintains Rating and Target Amid Expansion Plans

Guggenheim analyst John Heinbockel reiterated a Buy rating and a $36 price target.

Which Analyst has the best track record to show on LTH?

Analyst John Heinbockel (GUGGENHEIM) currently has the highest performing score on LTH with 4/6 (66.67%) price target fulfillment ratio. His price targets carry an average of $8.39 (30.39%) potential upside. Life Time Group Holdings stock price reaches these price targets on average within 46 days.

KB Home Beats Q2 EPS Estimates; Reaffirms FY25 Outlook

KB Home reported fiscal second-quarter 2025 earnings per share (EPS) of $1.50, exceeding the consensus estimate of $1.46 by $0.04, according to data compiled by financial analysts. Quarterly revenue totaled $1.53 billion, slightly above the consensus estimate of $1.5 billion but down from $1.71 billion in the prior-year period.

KB Home also reported Net income for the quarter declined 36% year over year to $107.9 million, with home deliveries decreasing 11% to 3,120 units. The average selling price rose to $488,700. Homebuilding operating income fell to $131.5 million from $188.2 million, with an operating margin of 8.6%. The housing gross profit margin declined to 19.3%, or 19.7% when adjusted for inventory-related charges. SG&A expenses rose to 10.7% of housing revenues, up from 10.1% last year.

As of May 31, 2025, total liquidity stood at $1.19 billion, inventories increased 7% to $5.91 billion, and the total lot position grew 14% year over year to 74,837. KB Home reiterated its full-year fiscal 2025 guidance, projecting housing revenues between $6.3 billion and $6.5 billion and an average selling price of $480,000 to $490,000.

KB Home expects homebuilding operating income margins between 8.6% and 9%, housing gross profit margins in the range of 19% to 19.4%, and SG&A expenses between 10.2% and 10.6% of revenues. The effective tax rate is projected at approximately 24%, and the year-end community count is forecast at around 250.

Analysts Trim Price Targets Following Q2 Results

BofA Securities analyst Rafe Jadrosich maintained a Neutral rating but reduced the price target from $58 to $54.
Wells Fargo analyst Sam Reid lowered the price target to $52.
Evercore ISI analyst Stephen Kim revised the price target downward from $77 to $70.

Which Analyst has the best track record to show on KBH?

Analyst Sam Reid (WELLS FARGO) currently has the highest performing score on KBH with 7/9 (77.78%) price target fulfillment ratio. His price targets carry an average of $1.21 (2.34%) potential upside. KB Home stock price reaches these price targets on average within 8 days.