Roth Capital Sees Considerable Headwinds for Keurig Green Mountain (GMCR) in 2016

Roth Capital Neutral Keurig Green Mountain (NASDAQ: GMCR) price target of $50.00 (from $58.00) following the company's 4Q earnings report. Net sales in Q4 decreased 13.3% to $1.04 billion, in line with Roth's estimate. Non-GAAP EPS equaled $0.85, above $0.73 estimate. There are considerable headwinds heading into F2016 that make an earnings increase unlikely. Brewer sales, down 32% in Q4, should benefit from a less adverse mix going forward, as the re-introduction of the Mini is being lapped.

Analyst Anton Brenner commented, "Keurig still has significant headwinds which are expected to result in flattish revenues and another earnings decline in F2016. While there are some signs that results may then stabilize or increase slightly, we remain skeptical as to the prospects for Keurig Kold, let alone management's earlier projection of meaningful international penetration and two additional beverage platforms yet to be introduced. However, the attractive yield and ongoing share buyback effort may provide support for the stock. We retain our Neutral rating."

For an analyst ratings summary and ratings history on Keurig Green Mountain click here. For more ratings news on Keurig Green Mountain click here.

Shares of Keurig Green Mountain closed at $40.50 yesterday.

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