Argus Downgrades Keurig Green Mountain (GMCR) to Hold

Argus downgraded Keurig Green Mountain (NASDAQ: GMCR) from Buy to Hold on a weaker near term outlook.

"Looking ahead, we expect difficulties with the Keurig 2.0 brewer to hurt sales of beverage pods, and look for the company to face pressure from price cuts on the pods that it manufactures for Starbucks and Kraft," the analyst commented.

They added, "We also expect higher coffee costs, spending on the new KOLD brewing system, and Keurig 2.0 markdowns to weigh on earnings in the near term."

The firm cut FY15 EPS estimate from $4.32 to $3.90 and FY16 estimate from $4.95 to $4.40.

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 $89.02 yesterday.

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