Baird upgrades Starbucks on favorable risk/reward under new CEO - InvestingChannel

Baird upgrades Starbucks on favorable risk/reward under new CEO

Baird upgraded Starbucks to Outperform from Neutral with a price target of $110, up from $81. The stock in premarket trading is up 14% to $88.00. The firm sees a more favorable risk/reward on Starbucks shares following the hiring of Brian Niccol as CEO. Baird acknowledges near-term risks related to the external operating environment, but believes Niccol brings “a skill set that will prove valuable in strengthening internal operating fundamentals for the company.” The stage is set for healthier growth in the years ahead, and sentiment on the shares will remain positive even if Starbucks’ operating results are lackluster for the next few quarters, the analyst tells investors in a research note.

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