William Blair Says Buy the Dip in Caribou (CBOU) Shares

Shares of Caribou Coffee (Nasdaq: CBOU) are continuing to underperform the broader stock market Monday despite a reassuring note from William Blair's Sharon Zackfia earlier. The analyst recommended investors buy the stock following a recent 28 percent decline amid concerning results from Green Mountain (Nasdaq: GMCR).

Zackfia noted Caribou currently relies on Green Mountain for about 17 percent of its sales and about 28 percent of 2011 segment-level profit. While both Starbucks (Nasdaq: SBUX) and Dunkin' Brands (Nasdaq: DNKN) receive substantially less from K-Cups, the analyst noted the market is now pricing in "virtually no further K-Cup contribution..." for Caribou.

William Blair maintains an Outperform rating on Caribou shares.

Shares of Caribou Coffee last traded at $12 even, down 0.8 percent from Friday's closing price.

Visit our Analyst Ratings page to track all the market-moving analyst action on shares of Caribou Coffee.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Etsy upgraded to buy at BofA on durable growth, buyback potential
• Rubrik Inc (RBRK) PT Raised to $120 at Cantor Fitzgerald Into Q2 Earnings
• Jefferies Downgrades Sunway Healthcare Holdings (SUNMED:MK) to Hold