![Starbucks Gets Upgraded by Wall Street Firm as It Makes Shocking CEO Change](https://news7g.com/wp-content/uploads/2024/08/108013668-1722357695053-gettyimages-2162702435-SL_Starbucks_SZ-780x470.jpeg)
Wall Street wasted no time in embracing Starbucks stock after the No. 1 coffee chain in the U.S. appointed Chipotle CEO Brian Niccol as CEO, ousting Laxman Narasimhan. Baird upgraded Starbucks from neutral to outperform immediately after the news and even before trading officially began on Wall Street. “We see a more favorable risk/reward profile for SBUX following the hiring of Brian Niccol as President and CEO,” wrote analyst David Tarantino. “While we acknowledge the near-term ongoing risks associated with the external operating environment, we believe Niccol brings a skill set that will prove valuable in strengthening the company’s internal operating fundamentals and setting the stage for healthier growth in the years ahead.” Based on this outlook, we now expect sentiment on the stock to remain positive even if operating results are weak over the next few quarters as the stock struggles.” Starbucks stock has struggled over the past three years following an initial post-pandemic demand boom. Since Narasimhan was appointed CEO in March 2023, the stock’s struggles have worsened, falling 21% during his tenure as the restaurant has struggled to cope with slower service and figure out the right pricing strategy in this inflationary environment. SBUX 5Y Mountain Starbucks, 5-year Baird has set a new price target of $110 on Starbucks, up more than 40% from Monday’s close. Shares rose 15% to around $89 in premarket trading. Niccol has run Chipotle since 2018 and was previously a top executive at Taco Bell, which is owned by Yum Brands. “We view Niccol as an outstanding CEO based on his track record of driving strong results at Chipotle since his arrival in 2018, as well as his successful tenures at YUM (including as CEO of Taco Bell) and Procter & Gamble,” Baird’s note said.