Dougherty & Co Raises Price Target on Green Mountain (GMCR) to $80, Remains Sidelined for Now
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Price: $91.67 --0%
Rating Summary:
5 Buy, 15 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 9 | New: 13
Rating Summary:
5 Buy, 15 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 9 | New: 13
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Dougherty & Co is reaffirming its Neutral rating on shares of Green Mountain Coffee Roasters (NASDAQ: GMCR), but its boosting its price target from $62 to $80.
The company reported strong quarterly results as total revenues rose 102 percent year over year to $1.16 billion, topping the Street's consensus of $1.06 billion and the firm's $1.07 billion estimate. The upside was driven by 115 percent increase in K-Cup sales and a 76 percent increase in brewer and accessories sales.
Gross margin for the quarter rose 4.1 percent to 29.1 and topped the firm's estimate by 1.1 percent. An analyst at the firm comments, "While we expect margin improvement, we don’t expect gross margins to expand as much sequentially from Q1-Q2 in 2012 as they did in 2011 when they increased from 25.1% to 37.5%."
Following the strong quarterly results, Dougherty & Co has raised its FY12 EPS estimate from $2.29 to $2.51 and revenues from $4.14 billion to $4.38 billion.
"The GMCR investment story has become difficult to evaluate and requires weighing a myriad of risks and opportunities into an investment thesis. A number of areas of longer-term risk focus for investors including IP protections and the impact of new competition, and the acceleration of fixed and working capital investments above revenue growth rates, amongst others, very much remain a part of the GMCR investment story," reports Dougherty & Co.
The firm highlights its Neutral rating reflects the remaining elements of long-term risk and short-term fundamental volatility.
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 $53.63 yesterday.
The company reported strong quarterly results as total revenues rose 102 percent year over year to $1.16 billion, topping the Street's consensus of $1.06 billion and the firm's $1.07 billion estimate. The upside was driven by 115 percent increase in K-Cup sales and a 76 percent increase in brewer and accessories sales.
Gross margin for the quarter rose 4.1 percent to 29.1 and topped the firm's estimate by 1.1 percent. An analyst at the firm comments, "While we expect margin improvement, we don’t expect gross margins to expand as much sequentially from Q1-Q2 in 2012 as they did in 2011 when they increased from 25.1% to 37.5%."
Following the strong quarterly results, Dougherty & Co has raised its FY12 EPS estimate from $2.29 to $2.51 and revenues from $4.14 billion to $4.38 billion.
"The GMCR investment story has become difficult to evaluate and requires weighing a myriad of risks and opportunities into an investment thesis. A number of areas of longer-term risk focus for investors including IP protections and the impact of new competition, and the acceleration of fixed and working capital investments above revenue growth rates, amongst others, very much remain a part of the GMCR investment story," reports Dougherty & Co.
The firm highlights its Neutral rating reflects the remaining elements of long-term risk and short-term fundamental volatility.
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 $53.63 yesterday.
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