Starbucks (SBUX) shares are surging 5.04% in Wednesday's trading session following an upgrade from Jefferies, as the coffee giant's recent stock pullback and ongoing turnaround efforts attract renewed investor interest.

Jefferies analyst Andy Barish raised his rating on Starbucks to "Hold" from "Underperform," maintaining a price target of $76. The upgrade comes as Starbucks' stock has retreated nearly 29% since the February market high, bringing it close to Jefferies' target and suggesting limited near-term downside potential.

While acknowledging challenges in near-term earnings visibility, Barish highlighted Starbucks' "Back to Starbucks" strategy, which focuses on investments in partners and technology to improve operational consistency and address service time issues. The company's efforts to streamline operations, enhance customer engagement, and maintain menu innovation provide a foundation for potential long-term resilience, despite ongoing macroeconomic uncertainties and sector-wide margin pressures.

Investors appear to be reevaluating Starbucks' prospects as the company navigates through its turnaround phase. However, analysts remain cautious about the immediate future, with concerns over higher coffee costs and potential lack of pricing power following recent price increases. The coffee chain's ability to manage costs, adapt to evolving consumer preferences, and maintain its brand identity will be crucial in supporting a gradual recovery over time.