Investing.com - Evercore ISI raised its price target on Starbucks (NASDAQ: SBUX ) stock to $105.00 from $95.00 on Tuesday, while maintaining an Outperform rating on the coffee chain.

The research firm cited multiple factors for the increased target, including announcements made at the recent Starbucks Leadership Experience (SLE25). Evercore ISI views the Starbucks turnaround as "multi-faceted" with complexity that will require "at least several years before settling into a steady algorithm."

Evercore ISI also established a two-year target of $120 and an upside scenario of $150, which assumes strong margin growth in late fiscal 2027 and fiscal 2028 accompanying a robust sales recovery, supply chain productivity savings, and SG&A savings.

The firm noted that Starbucks plans to scale "The Coffeehouse Playbook" across nearly all U.S. company-owned coffeehouses by fiscal year-end, which is 2-3 quarters earlier than previously anticipated. Additionally, the company will expand the Assistant Store Manager role to most U.S. company-operated locations in fiscal 2026.

Evercore ISI’s new base case for fiscal 2026 earnings per share is $2.45, below the consensus estimate of $2.95, assuming approximately a $1.2 billion labor investment that will be partially offset by SG&A savings and same-store sales lift from throughput and improving innovation.

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