Starbucks Shares Rise After Analyst Upgrades to Outperform

Starbucks (SBUX) shares rose about 2% following a significant upgrade by Baird analyst David Tarantino, who raised the stock rating from Hold to Buy/Outperform and increased the price target to $115. Tarantino highlighted optimism in Starbucks' turnaround strategy under CEO Brian Niccol, including initiatives like the Green Apron Service model, menu expansions, and a $500 million investment in staffing and cost reduction efforts. Analyst sentiment reflects expectations for improving comparable sales and earnings rebounds over the next few quarters, which should enhance investor confidence and support higher valuation metrics. Despite recent underperformance relative to the S&P 500, Wall Street consensus remains moderately positive with a mix of Buy, Hold, and Sell ratings, and an average price target around $100-$105. Other analysts and brokerage firms have similarly adjusted their price targets upward, reflecting a cautious but improving outlook for Starbucks amid ongoing operational enhancements. Overall, the upgrade signals growing confidence in Starbucks' potential to deliver financial improvement and shareholder value in the near term.