KeyBanc Capital Upgrades Green Mountain Coffee Roasters to Buy (GMCR)

KeyBanc Capital is out with its report today on Green Mountain Coffee Roasters

, upgrading GMCR from Hold to Buy. In a note to clients KeyBanc Capital writes, "We are more positive on the sales outlook for GMCR owing to stronger than expected brewer sales in 1Q11 (December quarter) and the potential for additional brewer and pod/k-cup sales as a result of a partnership with Starbucks

. As a result, we now expect the Company to grow EPS at a CAGR of 41% over the next three years (26% before), which should support the stock's premium valuation (39x NTM EPS). We are increasing our FY11 sales estimate to $2.64 billion (from $2.47 billion previously) and EPS estimates to $1.27 (from $1.24)." KeyBanc Capital has a $55 PT on GMCR. At the time of posting, shares of GMCR were trading at $46.03, down 0.70% from Monday's close.