Not everyone believes that the coffeehouse chain Starbucks will swiftly bounce back under new CEO Brian Niccol. Jefferies analyst Andy Barish is skeptical that the company can have a quick turnaround even with new leadership and has given Starbucks’ stock a rare downgrade in a new research note.
Barish now has an “Underperform” rating on Starbucks stock, which is equivalent to “Sell.” He also placed a lower price target of $76, predicting a 20% drop from Tuesday’s price of $94.45 per share.
Most analysts who cover Starbucks have recently upgraded the stock with the belief that Niccol can re-establish the chain to its former glory. The investors seem to share the same sentiment as the shares of Starbucks soared 27% since the news about Niccol’s hiring was announced.
However, Barish believes that Niccol won’t be able to perform miracles right away and that he’ll need more time to fix things because of issues beyond his control. He predicts that the effects of new leadership will be seen in fiscal 2026 while branding the 2025 fiscal year as a “throwaway.”
“While the new CEO suggests necessary strategic change is now on the table, we believe execution will be challenged as issues like ops, culture, value perception, and tech take time to fix,” Barish shared.