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In a report published Tuesday, analysts at Susquehanna Financial Group initiated coverage of Keurig Green Mountain Inc (NASDAQ: GMCR) with a Positive rating and a price target of $154.

There are a number of positive influences for the company's share price, including the ongoing growth in K-cup volumes in the mid-teens, Keurig Kold not yet being factored into the share price and the company's market share of 92 percent.

"K-cup volumes continue to grow in the mid-teens owing to expanding usage occasions and an expanding user base. We see further room for growth with single-serve brewer penetration in the U.S. still less than half of Europe and the fact that 50 million U.S. households with coffeemakers have yet to adopt the Keurig system," the analysts explained.

Related Link: Why Susquehanna Thinks Sodastream Is Worth $24/Share

Despite SodaStream International Ltd (NASDAQ: SODA) having achieved 1.5 percent HH penetration in the U.S., Keurig Green should be able to easily beat that with its strong franchise and partnership with The Coca-Cola Co (NYSE: KO).

"The appointment of "Pacho" Reyes (the architect of Coke's huge success in LatAm) to the Board of GMCR says a lot to us about KO's commitment to Kold," the analysts added.

Latest Ratings for GMCR

Nov 2015WedbushMaintainsNeutral
Nov 2015OTR GlobalDowngradesMixedNegative
Sep 2015CLSAMaintainsUnderperform

View More Analyst Ratings for GMCR
View the Latest Analyst Ratings

Posted-In: SusquehannaAnalyst Color Price Target Initiation Analyst Ratings


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