Schultz's Shifting His Starbucks Role Doesn't Equal A Major Shift In The Business Plan

Comments
Loading...

Following an announcement from Starbucks Corporation SBUX regarding the stepping down of its CEO Howard Schultz, Stephens said it does not anticipate a major shift in business.

The company also announced that chief operating officer Kevin Johnson will take over from Schultz, effective April 3, and the latter will remain on the board and serve as executive chairman. Schultz will lead the development of Starbucks Reserve stores and Roasteries around the world, the company noted.

Analyst Will Slabaugh thinks investors are likely to be concerned, given that Schultz has the most impressive track record of any CEO in the industry. That said, the analyst does not expect any major shift in business.

Stephens said it remains Equal Weight, primarily due to valuation and it has a $58 price target on the shares of the company.

At time of writing, shares of Starbucks were down 2.63 percent at 56.97.

Market News and Data brought to you by Benzinga APIs
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm

Posted In:
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!