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BMO Capital analyst Andrew Strelzik upgraded Starbucks (SBUX) to Outperform from Market Perform with a price target of $120, up from $102.

The analyst views Starbucks as a "reopening beneficiary with meaningful potential upside" to consensus estimates over the next two fiscal years. The upside will be driven by comp contributions from sales transfer due to the U.S. asset base transformation, accelerating digital momentum, easing competitive dynamics in China, and steeper margin recovery, Strelzik tells investors in a research note.

Further, Starbucks is "increasingly attractive" in the context of alternatives' share price appreciation, says the analyst.