BUZZ-Street View: Starbucks heading in the right direction

Updates

Starbucks SBUX.O reported a smaller-than-expected fall in first-quarter comparable sales on Tuesday, in early signs of the struggling coffee chain benefiting from CEO Brian Niccol's efforts to revive demand

Shares up 3.5% at 103.93 in premarket trading

THERE IS A CHANCE

TD Cowen ("buy", PT: $115) believes new CEO Brian Niccol brings a change to the narrative and has the right experience to grow higher U.S. traffic

Bernstein ("outperform," PT: $115) says turnaround may come early and take less capital expenditure; also adds that coffee price increases will not affect SBUX in 2025

Morgan Stanley ("overweight," PT: $115) says "comp improvement is the key driver this year, that plan seems to be on track with glimmers of progress and much more to come"

Jefferies ("underperform," PT: $76) says no early signs of improvement in same-store sales or traffic trends
However brokerage adds, "eventually, we think SBUX will benefit from several strategic changes underway and planned, but will take time to play out in an uncertain consumer environment"