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Starbucks (SBUX) Continues to Gain K-Cup Share (GMCR) - Goldman Sachs

July 19, 2012 2:03 PM EDT Send to a Friend
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Price: $78.36 -0.48%

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    25 Buy, 4 Hold, 1 Sell

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    Up: 35 | Down: 23 | New: 13
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Goldman Sachs weighed in on Starbucks (NASDAQ: SBUX) Thursday after Nielsen K-Cup data for the four weeks ending July 7th 2012 was released this morning. The data has implications for Green Mountain Coffee (NASDAQ: GMCR).

The data showed that Starbucks Nielsen K-cup market has reached a new high of 15% in the latest month. This equates to a 12% share on a unit basis given the SBUX's premium price points, the firm notes.

"We believe this is still the tip of the iceberg given the company’s ongoing upward share trajectory and the number of additional single serve initiatives still to come
from the company over the next 1-2 years," They cited continued shares gains in the Keurig system, the new Verismo system due in the fall, international single serve expansion.

The firm is maintaining its Conviction Buy List rating and price target of $63 on SBUX.

For an analyst ratings summary and ratings history on Starbucks click here. For more ratings news on Starbucks click here.

Shares of Starbucks are up 1 percent to $53.88, while GMCR is down 1.8 percent to $17.66.




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