Latest news with #DavidTarantino
Business Insider
6 days ago
- Business
- Business Insider
Starbucks Stock (SBUX) Jumps After Top Analyst Upgrades Rating to Buy
Starbucks (SBUX) stock rose about 2% on Tuesday after Robert W. Baird analyst David Tarantino upgraded the coffee giant's rating to Buy from Hold. Also, he raised the price target to $115 (23.3% upside) from $100. The Top analyst is optimistic that the company's new leadership and turnaround strategy will be effective and that tangible signs of improvement will become visible over the next few quarters. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Tarantino believes that this progress will boost investor sentiment, which, combined with a projected rebound in earnings, should support a higher valuation for the shares. Following the stock's recent underperformance, down 18.8% over the past six months versus a 4.2% gain in the S&P 500 (SPX), the analyst now views SBUX stock's risk-reward profile as more attractive. Previously, Tarantino held a Hold rating on the stock due to concerns over weak comparable sales, which impacted earnings projections for fiscal years 2025 and 2026. SBUX's Rebound Efforts Under CEO Brian Niccol, who joined Starbucks after a successful tenure at Chipotle (CMG), the company is making efforts to increase seating capacity, improve service speed, and roll out innovations like the Green Apron Service model, which focuses on human connection and personalized customer experiences. Starbucks is also expanding its menu with items like protein cold foam beverages and upgrading its bakery offerings. Further, the company is investing $500 million into improving store staffing, while also looking for ways to cut costs in its supply chain and other general expenses. Is Starbucks a Buy or Sell? Turning to Wall Street, analysts have a Moderate Buy consensus rating on SBUX stock based on 14 Buys, nine Holds, and two Sells assigned in the past three months. The average Starbucks stock price target of $100.61 per share implies a 7.87% upside potential.
CNBC
7 days ago
- Business
- CNBC
Baird upgrades Starbucks, says the turnaround picture is becoming clear
Starbucks may be set up for gains as its turnaround strategy takes hold over the coming quarters, according to Baird. The firm upgraded the coffee chain to outperform from neutral and increased its price target by $15 to $115. Its updated target calls for more than 25% upside from Monday's close. The stock has come under pressure in the past month, falling more than 3%, on the heels of its latest quarterly results showing its sixth consecutive quarter of same-store sales declines . But with CEO Brian Niccol saying that the company is "gaining momentum," analyst David Tarantino thinks growth could be around the corner. "We continue to have high conviction that turnaround strategies under new leadership will be effective in transforming Starbucks into a better company, and we expect visibility to this outcome to become increasingly clear over the next several quarters," the analyst wrote on Tuesday. "Tangible evidence of progress toward better financial performance should provide a boost to investor sentiment, helping to support elevated valuation metrics on the shares as earnings start to rebound." SBUX 3M mountain SBUX, 3-month Tarantino expects that stronger U.S. comps will emerge in 2026. That's bolstered by Starbucks' rollout of its " Green Apron Service " – which focuses on customer service and human connection through things like Sharpie drawings on cups – an enhanced innovation pipeline that includes drinks like the protein cold foam and an upgraded bakery case, among other factors, he noted. "We now have better visibility on store-level labor investments (~$500 million), and we expect to get details in upcoming quarters (Investor Meeting early calendar-2026) on cost savings opportunities, which we sense could be meaningful in multiple areas (G & A, supply chain, storelevel operating expenses) and provide some visibility into SBUX's long-term goal of returning operating margin back to F2019's level of 17% (from 10.3% in F2025E)," the analyst also wrote. Shares were more than 1% higher in the premarket on Tuesday. Year to date, they've lagged the broader market, rising only 0.5% compared to the S & P 500's more than 8% jump in the period. Analysts covering Starbucks are split, however. LSEG data shows that 18 of 39 of those covering the stock rate it a hold. Another 17 have a buy or strong buy. The remaining four hold underperform and sell ratings.
CNBC
13-06-2025
- Business
- CNBC
Buy this thermal management stock that's benefiting from the data center buildout, says KeyBanc
Modine Manufacturing has an opportunity to capitalize on the enormous data center buildout, according to KeyBanc Capital Markets. The investment bank initiated coverage of the thermal management stock with an overweight rating and a $125 per share price target, implying about 29% upside from Thursday's $97.07 close. Modine has lowered its exposure to the legacy automotive segment and is instead focusing on "high growth climate opportunities," namely data centers, according to analysts led by David Tarantino. KeyBanc said the Racine, Wisconsin-based manufacturer has an "attractive" position within the data center market, specifically in cooling power-hungry building housing racks of computers. Data centers are a key component behind artificial intelligence, as large language models and other AI programs require vast amounts of computing power. Modine's portfolio includes high efficiency bespoke cooling systems, Tarantino said. MOD YTD mountain Modine Manufacturing stock in 2025. The company's efforts to expand its data center business has underpinned Modine's recently improved earnings, according to Tarantino. The company forecast a compound annual growth rate of roughly 39% from fiscal year 2022 through 2026, he said. "Looking out, with the [data center] business on track to represent ~30% of sales in FY26E, we see MOD's Data Center business maintaining its uniquely robust organic growth momentum (up > +30% in FY26E; ~+48% organic CAGR from FY22-FY26E) as end market growth compounded by ramping cooling needs is further supported by ongoing meaningful capacity additions," Tarantino wrote. "As such, we view current levels as a compelling entry point given, and believe our $125 PT implying 15.6x more accurately values the data center business and compelling transformation runway," he added. Shares have pulled back 19% in 2025, but have rallied 23% in the second quarter.
