UPDATE: Bank of America Reiterates on Green Mountain Coffee Roasters on News of Partnership with Coca-Cola

In a report published Friday, Bank of America analyst Bryan D. Spillane reiterated a Neutral rating on Green Mountain Coffee Roasters GMCR, and raised the price target from $87.00 to $108.00. In the report, Bank of America noted, “After the close on 2/5/2014, GMCR and KO announced a 10 year collaborative agreement on the development and introduction of The Coca-Cola Company's brand portfolio for use in the Keurig Cold system globally. In connection, KO is purchasing a 10% interest in GMCR...In our 12/06/2013 report ‘Cold Front approaching soft drink industry?' we highlighted that the advancements of Keurig Cold and the current malaise in the soft drink industry increased the likelihood that one of the major soft drink companies would partner with GMCR. While there are clearly hurdles to driving consumer adoption we believe Keurig Cold can help soft drink companies expand usage occasions. U.S. non-alcohol ready to drink beverage market is $117bn at retail and we estimate an $11b profit pool. This provides ample opportunity for GMCR.” Green Mountain Coffee Roasters closed on Thursday at $102.10.