Green Mountain (GMCR) Unlikely to Lose Channel Share - KeyBanc

KeyBanc maintained a Buy rating on Green Mountain Coffee Roasters (NASDAQ: GMCR) with a price target of $100.00. Comments follow meetings with industry executives at a conference.

Analyst Akshay S. Jagdale said, "Following are the main takeaways: 1) GMCR's non-retail business is very diversified, and the Office Coffee Services subsegment is smaller than most estimates suggest; 2) GMCR recently delivered its updated distributor contract (KAD agreement) to its authorized distributors that restricts them from selling non-licensed single serve packs or non-licensed Keurig compatible brewers; 3) several companies launched K-cup compatible brewers at the conference this week in an effort to help willing distributors circumvent Keurig's distributor contract (KAD agreement); 4) based on conversations with a number of large OCS distributors and competing machine manufacturers/sponsors, we assign a low probability to GMCR losing significant share in this channel within the next year; and 5) we do not believe a price war is emerging in this channel – K-cup prices under the latest KAD agreement are largely unchanged."

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 $60.63 yesterday.

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