NEW YORK (TheStreet) --Shares of Starbucks Corp. are up by 0.23% to $48.25 in pre-market trading on Thursday morning, after BMO Capital began coverage on the coffee house chain with an "outperform" rating and a $56 price target. The firm said it was beginning coverage on Starbucks as it believes the company has a number of growth opportunities. "Starbucks is an attractive long-term investment opportunity and somewhat uniquely positioned within large-cap restaurants, in our view, given the litany of growth opportunities available to a concept of its size and scale," BMO said in an analyst note. BMO believes Starbucks will earn full year 2015 EPS of $1.58 per share and full year 2016 EPS of $1.87 per share. "The Starbucks story is one of consistent, reliable, multi-year growth at least in line with its long-term growth algorithm. However, we believe there is also a path for Starbucks to exceed expectations over the next several years," BMO continued. Separately, TheStreet Ratings team rates STARBUCKS CORP as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation: "We rate STARBUCKS CORP (SBUX) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins." Highlights from the analysis by TheStreet Ratings Team goes as follows: The revenue growth came in higher than the industry average of 8.2%. Since the same quarter one year prior, revenues rose by 13.3%. Growth in the company's revenue appears to have helped boost the earnings per share. Powered by its strong earnings growth of 83.09% and other important driving factors, this stock has surged by 32.33% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year. STARBUCKS CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, STARBUCKS CORP turned its bottom line around by earning $1.36 versus -$0.01 in the prior year. This year, the market expects an improvement in earnings ($1.57 versus $1.36). The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income increased by 81.8% when compared to the same quarter one year prior, rising from $540.70 million to $983.10 million. The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. When compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, STARBUCKS CORP's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500. You can view the full analysis from the report here: SBUX Ratings Report Must Read: Warren Buffett's Top 25 Stocks for 2015
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