Wedbush Downgrades Peet's Coffee & Tea (PEET) to Neutral; Starbucks (SBUX) Only Possible Step Up Suitor

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Wedbush downgraded Peet's Coffee & Tea (NASDAQ: PEET) from Outperform to Neutral with a price target of $83.00 (from $74.00).

Analyst, Nick Setyan, said, "While we believe shareholders could argue for a higher valuation based on the potential for upside to 2013 EBITDA and EPS expectations, we do not believe the probability of a competing bid is high enough for us to maintain our OUTPERFORM rating."

"Peet’s strategic positioning as the premium specialty coffee brand within grocery, possible threat from accelerated retail unit development, and valuation, narrow field of other suitors to Starbucks (Nasdaq: SBUX), in our opinion."

Yesterday, Joh. A. Beneckiser announced it would acquire PEET's for $73.50/shares.

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, with a 52 week range of $51.16-$77.60.

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