UPDATE: Dougherty & Co Downgrades Green Mountain Coffee Roasters (GMCR) to Neutral

February 11, 2013 8:27 AM EST
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Price: $91.67 --0%

Rating Summary:
    6 Buy, 18 Hold, 3 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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(Updated - February 11, 2013 3:47 PM EST)

Shares of Green Mountain Coffee Roasters (NASDAQ: GMCR) are lower Monday after the company lost a noted bull.

Dougherty & Co downgraded the K-Cup maker from Buy to Neutral, saying they sees a number of factors that will challenge the multiple investors assign the stock.

Factors include:

1) K‐Cup revenues, while solid, were below their estimate in the December quarter. Sales rose 21% in the December, but was below the firm's 28% estimate

2) portion packs implied in March quarter guidance were also below the firm's estimate. "With 4‐weeks of K‐Cup supply on hand (a good number) in December, normal channel inventories, easier YOY comparisons, and above consensus brewer sales during the holidays, we were expecting higher March quarter K‐Cup growth than the mid‐twenty percent range implied in its guidance," the analyst states.

3) They sense GMCR views the long‐term growth of its U.S. household brewer base more conservatively today than when it first provided projections and they believe such projections could prove aggressive.

Given these factors, the firm is taking a more more cautious view on the performance outlook for the shares.

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 $45.16 yesterday.

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