UPDATE: Dougherty & Company Raises PT to $24 on Caribou Coffee
Dougherty & Company revises its price target to $24 on Caribou Coffee (NASDAQ: CBOU) as the coffee chain continues to drive solid retail execution founded on expending AUVs.
Dougherty & Company comments, "Accelerating unit growth and new products provide visibility for retail growth in 2012 and beyond. The CPG business is stepping on the pedal with distribution expansion and the CROSSMARK relationship, which should enhance quality of channel management and enable scalability in the business. GMCR contributions to the commercial business are significant and should remain strong. Looking into 2H 2012 and 2013, commodity costs as an earnings headwind could abate meaningfully, but we have not reflected a big margin recovery in our estimates – this could be a nice earnings tailwind in 2013."
CBOU closed at $17.45 on Wednesday.
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