UBS Analysts Believe In Starbucks’ CEO—And Its Turnaround Plan

Starbucks stock has frothier days ahead.

That’s the take of analysts at UBS, who late last week expressed confidence in CEO Brian Niccol’s “Back to Starbucks” campaign, while raising its price target for Starbucks (SBUX) shares. Niccol previously brought Chipotle (CMG) back after an E. coli outbreak deterred customers. 

“We believe [Starbucks] turnaround plans should support a sales recovery over time, given CEO Niccol’s track record and implementation of strategic initiatives across operations, marketing, product and customer experience,” UBS wrote in a research note.

The analysts maintained their “neutral” rating but raised their price target to $95, slightly above the average analyst price target of $92.64 compiled by Visible Alpha. Starbucks closed at $93.48 on Monday, about flat from last week and up 2.4% this year. 

UBS found a “modestly better” improvement from 2024 to 2025 in the number of surveyed consumers who planned to visit a Starbucks in the coming year. Traffic could be boosted further when Niccol implements changes that consumers have indicated would bring them to Starbucks more frequently, including varying the menu and enhancing service, UBS added. 

Still, UBS acknowledged a turnaround will take time, given pressure on consumers in the U.S. and a belief that Starbucks is expensive. More than 70% of those who plan to cut back on Starbucks said the chain’s prices were too high, according to UBS surveys. Deutsche Bank also found that price was the top deterrent in recent customer feedback.

Starbucks’ value perception has improved, but lags behind competitors and is particularly weak among higher earners, said UBS. About 24% of consumers earning up to $40,000 annually said Starbucks offers good value, while 3% of those making at least $100,000 felt that way, surveys found.

“While we don’t expect a notable menu price rollback or significant increase in promotional activity, we believe an overall enhanced customer experience can improve value and value for the money perceptions,” said UBS.

Niccol’s team also recently hosted a three-day leadership conference for Starbucks employees and announced plans to station a dedicated assistant store manager at most domestic stores.