UPDATE: Jefferies Downgrades Peet's Coffee & Tea to Hold Post Acquisition Announcement

Jefferies reduced its rating on Peet's Coffee & Tea PEET from Buy to Hold and lowered its price target from $88 to $73.50. Jefferies noted, "PEET announced that it entered into an agreement to be acquired by Joh. A. Benckiser in cash for $73.50/ sh. or ~$1B (29% prem to 7/20 pr.) & is expected to close in ~3 mo. … We believe it is unlikely there will be competing bids and believe the valuation is fair and reflective of the company's LT growth opportunity, while balancing current risks and uncertainties regarding green coffee costs, single serve, and a competitive external environment in the specialty coffee segment. Accordingly, we lowered our PT to $73.50 and lowered our rating to Hold." Peet's Coffee & Tea closed at $73.05 on Monday.