(CTN News) – Melius Research began covering Starbucks (NASDAQ:SBUX) on Monday, recommending the company’s shares for sale with a price objective of $80.00 (as of the previous trading day).

Melius Research will keep working to make sure it continues to have direct control over the business.

The firm being offered for sale has a price-to-earnings ratio of 34.6x, which is rather high given its current selling price of $94.94 and market capitalization of The firm being offered for sale has a price-to-earnings ratio of 34.6x, which is rather Starbucks high given its current selling price of $94.94 and market capitalization of $108 billion.08 billion.

This moment, the massive coffee company is for sale.

The company seems to be charging prices for its products that are more than what is deemed to be their fair value, according to the results of research conducted by InvestingPro.

There was reason to be concerned about the path the coffee giant is on to attain operational consistency and brand revival, according to the results of analysis conducted by the research agency. The firm said in a statement that this path would be “more challenging and extended than the general consensus anticipated.”

Melius claimed that Starbucks is currently dealing with “intense local competition” in the Chinese market, which is crucial even though the company’s operations in the US are still improving.

Despite Starbucks’ success in China, this remains the case.

Melius says this issue was raised in the first place because of the importance of the Chinese market. Starbucks has acknowledged that it is trying to reimagine the “third place” notion; yet, the company is struggling to strike a balance between offering customers excellent experiences and prompt service.

Even though Melius ignores “the time and trade-offs required to rebuild momentum,” he believes that the present stock price already fairly captures a significant portion of Starbucks’ long-term potential. The turnaround is currently being carried out, even though he acknowledges that it is “not yet proven” and that there is a “high” execution risk.

Furthermore, he thinks that this change is happening right now. Recent publications have covered a number of noteworthy incidents involving the coffee shop brand Starbucks. Over the past few years, these investigations have been conducted.

Starbucks may sell some of its China operations.

These have been circulating rumors. It is possible that the business will receive proposals worth between It is possible that the business will receive proposals worth between $10 billion and $12 billion.0 billion and It is possible that the business will receive proposals worth between $10 billion and $12 billion.2 billion.

KKR & Co., Centurium Capital, Carlyle Group (NASDAQ:CG), and Hillhouse Capital are a few of the firms vying for a share in the business. Another organization that might be interested is Hillhouse Capital.

The goal of obtaining a majority stake in the business has been highlighted in a number of proposals. Starbucks is presently considering these recommendations and may be considering selling a larger part than they originally intended to sell, according to a Bloomberg article.

Stifel has increased its price forecast for Starbucks to Stifel has increased its price forecast for Starbucks to $105 for the intermediate timeframe, but still suggesting that the company be acquired.05 for the intermediate timeframe, but still suggesting that the company be acquired.

This increase can be attributed to the corporation’s determination that it would be commercially advantageous to establish a strategic relationship in China. Citi expects Starbucks to either meet or slightly surpass its estimates about same-store sales in the US when it issues its next earnings report.

It is expected that Starbucks will either match or marginally surpass Citi’s target price, which has been raised to It is expected that Starbucks will either match or marginally surpass Citi’s target price, which has been raised to $100.00. The decision by Citi to increase its price aim led to the development of this estimate.

The Green Apron initiative seems to be generating a significant amount of curiosity, which could boost sales, according to Citi’s research findings.

According to both Stifel and Citi, Starbucks’ efforts to strengthen its position in the US are significantly influencing the company’s future growth strategy.

SOURCE: IN