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Starbucks shares gain for a third straight session on Tuesday, company finalizes licensing deal with Nestle

According to an announcement by Nestle and Starbucks Corporation (SBUX) on Tuesday, the two companies have finalized their licensing deal, under which the Swiss food giant will market the US coffee chain’s packaged coffees and teas across the globe.

Starbucks shares closed higher for a third consecutive trading session on NASDAQ on Tuesday. The stock edged up 0.15% ($0.08) to $53.05, after touching an intraday high at $53.47, or a price level not seen since August 22nd ($53.64).

Shares of Starbucks Corporation have retreated 7.63% so far in 2018 compared with an 8.37% gain for the underlying index, S&P 500 (SPX).

In 2017, Starbucks Corp’s stock rose 3.44%, thus, it again underperformed the S&P 500, which registered a 19.42% return.

Valued at $7.15 billion, the agreement is to give Nestle perpetual rights to offer Starbucks products, including Starbucks, TeavanaTM/MC and Seattle’s Best Coffee outside of the US coffee giants stores.

As a result, about 500 people currently employed with Starbucks Corp are to shift to Nestle.

According to CNN Money, the 24 analysts, offering 12-month forecasts regarding Starbucks Corporation’s stock price, have a median target of $58.00, with a high estimate of $69.00 and a low estimate of $51.00. The median estimate represents a 9.33% upside compared to the closing price of $53.05 on August 28th.

The same media also reported that 15 out of 30 surveyed investment analysts had rated Starbucks Corporation’s stock as “Hold”, while 14 – as “Buy”.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, todays levels of importance for the Starbucks stock are presented as follows:

R1 – $53.09
R2 – $53.14
R3 (Range Resistance – Sell) – $53.18
R4 (Long Breakout) – $53.32
R5 (Breakout Target 1) – $53.48
R6 (Breakout Target 2) – $53.54

S1 – $53.01
S2 – $52.96
S3 (Range Support – Buy) – $52.92
S4 (Short Breakout) – $52.78
S5 (Breakout Target 1) – $52.62
S6 (Breakout Target 2) – $52.56

By using the traditional method of calculation, the weekly levels of importance for Starbucks Corporation (SBUX) are presented as follows:

Central Pivot Point – $53.20
R1 – $53.99
R2 – $55.22
R3 – $56.01
R4 – $56.79

S1 – $51.97
S2 – $51.18
S3 – $49.95
S4 – $48.71

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