KeyBanc Reiterates Bullish Stance On Green Mountain (GMCR) Following Strong Q2
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Price: $91.67 --0%
Rating Summary:
5 Buy, 15 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 18 | New: 16
Rating Summary:
5 Buy, 15 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 18 | New: 16
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KeyBanc reiterated their Buy rating and $85 price target on Green Mountain Coffee Roasters (NASDAQ: GMCR) following what the firm called an "impressive quarter."
The analyst notes that the Company beat consensus estimates on sales and EPS, reported a substantial and unexpected increase in its gross margin, increased its sales and EPS guidance to levels above consensus estimates (the midpoint of its FY11 adjusted EPS guidance is 17% above consensus), increased its capital spending guidance given its need for additional capacity, and said it will need additional sites over the next couple of fiscal years in order to accommodate its anticipated demand growth.
Green Mountain also announced plans to sell 7.1 million shares, which proceeds being used to pay off debt.
In addition, the company economics of selling GMCR-branded vs. partner branded K-Cups are fairly similar, which the analyst said is an encouraging sign "given how much of the Company's future growth we expect to come from selling partner brands such as Starbucks, Dunkin' Donuts and Swiss Miss."
Green Mountain is in the process of raising prices that will be fully reflected in its fourth quarter. The increase will impact consumer prices by about 10% and will seek to offset a nearly 60% increase in green coffee costs since September.
For more ratings news on Green Mountain Coffee Roasters click here and for the rating history of Green Mountain Coffee Roasters click here.
Shares of Green Mountain Coffee Roasters closed at $64.07 yesterday.
The analyst notes that the Company beat consensus estimates on sales and EPS, reported a substantial and unexpected increase in its gross margin, increased its sales and EPS guidance to levels above consensus estimates (the midpoint of its FY11 adjusted EPS guidance is 17% above consensus), increased its capital spending guidance given its need for additional capacity, and said it will need additional sites over the next couple of fiscal years in order to accommodate its anticipated demand growth.
Green Mountain also announced plans to sell 7.1 million shares, which proceeds being used to pay off debt.
In addition, the company economics of selling GMCR-branded vs. partner branded K-Cups are fairly similar, which the analyst said is an encouraging sign "given how much of the Company's future growth we expect to come from selling partner brands such as Starbucks, Dunkin' Donuts and Swiss Miss."
Green Mountain is in the process of raising prices that will be fully reflected in its fourth quarter. The increase will impact consumer prices by about 10% and will seek to offset a nearly 60% increase in green coffee costs since September.
For more ratings news on Green Mountain Coffee Roasters click here and for the rating history of Green Mountain Coffee Roasters click here.
Shares of Green Mountain Coffee Roasters closed at $64.07 yesterday.
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