.August 14, 2024 01:05:00 PM

Several Wall Street firms have upgraded their ratings on Starbucks (NASDAQ:SBUX) following the appointment of Brian Niccol as the new CEO, replacing Laxman Narasimhan. This change led to a 24% surge in Starbucks share price.

Analysts at Stifel have upgraded Starbucks stock to a Buy rating and raised their price target to $110. They anticipate Niccol will focus on reversing declining transaction trends in the U.S. market.

Stifel suggests that Starbucks’ current initiatives will be more effectively executed under Niccol’s leadership. The firm has raised its long-term growth forecast to 20% over the next five years.

Evercore ISI analysts have upgraded Starbucks to Outperform, expecting a U.S. brand resurgence under Niccol’s leadership. They project over 15% earnings growth in the next three years driven by increased customer traffic in the U.S.