KeyBanc Disappointed By Green Mountain (GMCR) 'Miss' But Highlights Loads of Positives
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Price: $91.67 --0%
Rating Summary:
5 Buy, 15 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Rating Summary:
5 Buy, 15 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
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KeyBanc reiterated their Buy rating on Green Mountain Coffee Roasters (NASDAQ: GMCR) but cut their price target from $120 to $80 following disappointing Q4 results.
The firm said while they are concerned about the 4Q miss and subsequent inventory build, consumption trends for brewers and K-cups remain solid and are showing signs of acceleration in the month of September.
KeyBanc said the 73% growth in brewer sales in September is even more impressive given that these purchases exclude the inventory build for holidays, which begin in October or November, as well as any potential benefit from the Starbuck's agreement.
The firm believes the Q4 earnings miss was primarily related to retailer buy-in ahead of the ~30% price increase on K-cups in the 4Q and retailer inventory adjustment that were not consistent with recent trends.
The firm cut Q1 EPS estimates from $0.46 to $0.41.
For an analyst ratings summary and ratings history on Green Mountain Coffee Roasters click here. For more ratings news on Green Mountain Coffee Roasters click here.
Shares of Green Mountain Coffee Roasters closed at $67.02 yesterday.
The firm said while they are concerned about the 4Q miss and subsequent inventory build, consumption trends for brewers and K-cups remain solid and are showing signs of acceleration in the month of September.
KeyBanc said the 73% growth in brewer sales in September is even more impressive given that these purchases exclude the inventory build for holidays, which begin in October or November, as well as any potential benefit from the Starbuck's agreement.
The firm believes the Q4 earnings miss was primarily related to retailer buy-in ahead of the ~30% price increase on K-cups in the 4Q and retailer inventory adjustment that were not consistent with recent trends.
The firm cut Q1 EPS estimates from $0.46 to $0.41.
For an analyst ratings summary and ratings history on Green Mountain Coffee Roasters click here. For more ratings news on Green Mountain Coffee Roasters click here.
Shares of Green Mountain Coffee Roasters closed at $67.02 yesterday.
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