UPDATE: Jefferies Downgrades Caribou Coffee to Hold Post Acquisition Announcement
Jefferies reduced its rating on Caribou Coffee (NASDAQ: CBOU) from Buy to Hold and reiterated its previous $16 price target.
Jefferies said, "[W]e believe JAB is a good strategic match for CBOU's global retail footprint and premium positioning in single-serve through its licensing agreement with Green Mountain [GMCR, $40.32, NC]. CBOU will continue to operate independently out of Minneapolis under current mgmt, and we do not anticipate any competing bids. … We think the valuation fairly balances CBOU's long term opportunity in both retail coffeehouses and commercial growth with the current risks and uncertainties regarding single serve and the competitive environment."
Caribou Coffee closed at $16.02 on Monday.
Latest Ratings for CBOU
|Dec 2012||Longbow Research||Downgrades||Buy||Neutral|
|Dec 2012||Stephens & Co.||Downgrades||Overweight||Equal-Weight|
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.