Starbucks powers higher with return of Howard Schultz viewed favorably
Nadya So/iStock Editorial via Getty Images

Starbucks Corporation (SBUX
+7.2%) rallied after the company announced the return of founder Howard Schultz for his third stint at running the coffee chain giant as Interim CEO.
The early reaction from analysts to the development is generally positive.
BTIG analyst Peter Saleh (Buy rating, $130 price target): "We cannot think of a better executive to lead the brand at this stage in its growth cycle, as it emerges from the pandemic and works to appease partners, unions and shareholders alike. While the company has initiated a search for a permanent CEO and expects to announce this leadership by the fall, we would not be surprised if this transition period leads to a permanent role (again) for Mr. Schultz."
Cowen analyst Andrew Charles (Outperform, $115 price target): "The range of outcomes from this process is vast, but we view as a positive for a stock that has been under pressure YTD. We note a strong internal bench but believe unionization publicity could be a factor pushing the company to look externally. We argue former Starbucks COO (and CFO) Troy Alstead, who was beloved by the investment community, ought to be on the short list for the role. Mr. Alstead retired in 2015 and was succeeded by Kevin Johnson."
Baird (Neutral, $95 price target) is more cautious on the development, warning that the CEO transition may boost odds that company cuts earning guidance when it reports results in early May due to COVID-19 pressures in China and cost headwinds.
See the valuation metrics on Starbucks.