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

Following an announcement from Starbucks Corporation (NASDAQ: 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.