UPDATE: Jefferies Downgrades Caribou Coffee to Hold Post Acquisition Announcement

Jefferies reduced its rating on Caribou Coffee

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.