Green Mountain Shares Lower Despite Raised Target, Bullish Comments at SunTrust
SunTrust Robinson Humphrey's William Chappell lifted his price target on shares of Green Mountain (NASDAQ: GMCR) from $45 to $50 in a research note Friday morning. The analyst reiterated a Buy rating.
Chappell believes fears related to the entry of Starbucks' (NASDAQ: SBUX) Verisimo into the single-serve market have "substantially diminished" over the last month or so. The analyst called the recent "$50 off" promotion a positive indication for Green Mountain.
Citing channel checks, Chappell believes new K-Cup competition has now finally arrived at the marketplace. He pointed out Kraft's (NASDAQ: KRFT) has been "limited" and private-label K-Cup discounts are smaller than the normal branded-to-private label spread. Chappell is expecting a slow 2013 ramp for private-label K-Cups.
Green Mountain shares are trading down nearly 1 percent in pre-market action.
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|May 2015||Wedbush||Initiates Coverage on||Neutral|
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