Stifel Nicolaus Maintains Sell on Green Mountain Coffee
Stifel Nicolaus reiterates its Sell rating on Green Mountain Coffee (NASDAQ: GMCR) as concerns remain despite an earnings beat that alleviates concerns of slowing demand.
Stifel Nicolaus says, "Near-term, we anticipate GMCR shares are likely to outperform as investors focus on strong brewer sales and a corresponding increase in K-Cup attachment rate. We nonetheless maintain our Sell rating but increase our fair value to $39 to reflect greater household penetration of brewers in our demand model. Longer-term, we continue to believe competition resulting from partner brands (Starbucks, Folgers, etc), the September 2012 patent expiration, and other Keurig-compatible pods (e.g., Rogers Family's OneCup) will negatively impact K-Cup profitability, distantly the most important earnings driver."
GMCR closed at $53.63 a share yesterday.
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