UPDATE: Jefferies Raises Target on Caribou Coffee to $24

Jefferies increases its price target from $22 to $24 on Buy-rated Caribou Coffee CBOU as the company introduces lower coffee costs in 2013. Jefferies says, "Although valuations are near historical averages, the potential gross margin improvements from lower coffee costs in 2013, along with positive fundamentals, lead us to raise estimates & target prices and continue to have a favorable view of the specialty coffee category. The leverage in SBUX, PEET & CBOU models to lower coffee prices lead us to maintain our Buy ratings, with some of the best EPS gains in the category for 2013." CBOU closed at $16.32 a share on Thursday.