Source: Unsplash 

BTIG analyst Peter Saleh upgraded Starbucks (SBUX) to Buy from Neutral with a $130 price target.

The stock closed Monday up $1.09 to $108.90. The "faster-than-anticipated" pace of restaurant reopening, coupled with a federal stimulus, should lead to upward earnings revisions, Saleh tells investors in a research note. The analyst expects Starbucks's fiscal Q2 earnings to top consensus expectations as the company laps the initial impact from the pandemic and views guidance as "overly conservative."

He expects the company's same-store sales to "materially accelerate" over the course of 2021 due to easier comparisons, reopenings, and federal stimulus.