UPDATE: Bank of America Downgrades Green Mountain Coffee Roasters to Neutral

Bank of America lowers its rating on Green Mountain Coffee Roasters

to Neutral from Buy and cuts its target price $7 to $63, reflection more competition in the single-serve arena. Bank of America says, "Starbucks (

) announced that it is introducing a new premium single cup brewing system called Verismo. While there are still details about the system that we don't know (e.g. price points for the machines and the pods), we do believe it creates potential risk to GMCR by diverting consumer attention and creating more competition in the next generation of single cup systems. We are not making any changes to our estimates but we are lowering our price objective from $70 to $63 to reflect our view that the valuation will be negatively impacted by the risk associated with the presence of more competition in the single cup arena." GMCR closed at $62.40 a share on Thursday.