Jefferies Downgrades Peet's Coffee & Tea (PEET) to Hold; Acquired by Joh. A. Benckiser

July 24, 2012 9:48 AM EDT Send to a Friend
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Price: $73.46 --0%

Rating Summary:
    1 Buy, 8 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 24 | Down: 28 | New: 14
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Jefferies downgraded Peet's Coffee & Tea (NASDAQ: PEET) from Buy to Hold with a price target of $73.50 (from $88.00).

Analyst, Alexander Slagle, said, "PEET announced that it entered into an agreement to be acquired by Joh. A. Benckiser in cash for $73.50/ sh. or ~$1B (29% prem to 7/20 pr.) & is expected to close in ~3 mo. While this announcement comes as a surprise, JAB appears to be good strategic match & we believe a competing bid is unlikely. Valuation represents ~13.5x '13 EBITDA or 30x EPS, which reflects its strong growth opportunity & premium brand positioning."

For an analyst ratings summary and ratings history on Peet's Coffee & Tea click here. For more ratings news on Peet's Coffee & Tea click here.

Shares of Peet's Coffee & Tea closed at $73.05 yesterday.


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