KeyBanc Starts Peet's Coffee & Tea (PEET) at Buy; Well Positioned to Benefit from Trend in High Quality, Super Premium Coffee Consumption
PEET Hot Sheet
Rating Summary:4 Buy, 5 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 16 | Down: 7 | New: 23
KeyBanc initiates coverage on Peet's Coffee & Tea (NASDAQ: PEET) with a Buy. PT $80.00.
KeyBanc analyst said, "We consider PEET a very well-run company with an attractive return and growth profile: the Company's sales and EPS have grown by CAGRs of approximately 10% and 27%, respectively, following a shift in the Company's strategy to focus on growing its consumer packaged coffee and tea business in FY07; additionally, it has no debt, and its ROIC is in the mid-teens (approximately 15%) based on our calculations. Even more impressive is the fact that all of its growth has been organic. As a result of the Company's outstanding financial results, total shareholder return has averaged roughly 19% over the last three years."
"Alfred Peet founded Peet's Coffee & Tea in 1966 with a gold-standard quality position by focusing on three product tenets: 1) highly selective sourcing; 2) an artisan-roasting process; and 3) it is delivered fresh. In terms of highly selective sourcing, PEET's buys the highest quality coffee beans in the industry, which command higher differentials (premium over "C" price) than its competitors. As for the artisan-roasting process, the Company hand roasts its coffee beans compared to the industrial batch roasting process used by most of its larger competitors. Furthermore, PEET's hand roasting process is monitored and managed by a "roastmaster" while most of its competitors use machines."
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 $67.56 yesterday, with a 52 week range of $39.88-$67.72.
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KeyBanc analyst said, "We consider PEET a very well-run company with an attractive return and growth profile: the Company's sales and EPS have grown by CAGRs of approximately 10% and 27%, respectively, following a shift in the Company's strategy to focus on growing its consumer packaged coffee and tea business in FY07; additionally, it has no debt, and its ROIC is in the mid-teens (approximately 15%) based on our calculations. Even more impressive is the fact that all of its growth has been organic. As a result of the Company's outstanding financial results, total shareholder return has averaged roughly 19% over the last three years."
"Alfred Peet founded Peet's Coffee & Tea in 1966 with a gold-standard quality position by focusing on three product tenets: 1) highly selective sourcing; 2) an artisan-roasting process; and 3) it is delivered fresh. In terms of highly selective sourcing, PEET's buys the highest quality coffee beans in the industry, which command higher differentials (premium over "C" price) than its competitors. As for the artisan-roasting process, the Company hand roasts its coffee beans compared to the industrial batch roasting process used by most of its larger competitors. Furthermore, PEET's hand roasting process is monitored and managed by a "roastmaster" while most of its competitors use machines."
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 $67.56 yesterday, with a 52 week range of $39.88-$67.72.
Discover Wall Street's best ratings calls with the pros - Upgrade to Ratings Insider Elite. Free Trial!
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