UPDATE: Dougherty & Company Upgrades Caribou Coffee to Buy, Reiterates $15 PT

In a report published earlier today, Dougherty & Company LLC upgraded its rating for Caribou Coffee Company CBOU from Neutral to Buy, and reiterated its $15.00 price target. Dougherty & Company said in its report “CBOU has developed a strong track record on its turnaround initiatives in recent years. Solid retail execution founded on expanding AUVs has been its key accomplishment. 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. Looking into 2H 2012 and 2013, commodity costs as an earnings headwind will abate meaningfully. With a sharp correction in equity value below our $15 price target and our confidence in CBOU management's execution track record, we are raising our rating on CBOU shares from Neutral to Buy. Our $15 price target, which is unchanged, reflects 6.5x our 2013 EBITDA estimate based on our projected 2013 balance sheet.” Caribou Coffee Company closed yesterday at $12.76.