Several analysts have recently weighed in on Keurig Green Mountain Inc (NASDAQ:GMCR), issuing notes to investors. Matthew Grainger of Morgan Stanley Initiated their Buy rating on the stock 4 days ago with a $160.00 price target, or 19.48% upside to the last closing price. According to Tip Ranks, Matthew is ranked 1117 out of 3441 analysts. The stocks he covers yield an average of 7.2% growth in the one year following his recommendations.
Judy Hong of Goldman Sachs also released a note to investors two months ago reiterating the firms Buy stance on Keurig Green Mountain Inc (NASDAQ:GMCR)
“Keurig Green Mountain Inc (GMCR) announced it has agreed to purchase the remaining 85% stake in Bevyz, for ~$220 million; financed with cash on hand. Management noted that the acquisition supplements GMCR’s technology and R&D capabilities. There is no change to GMCR’s plan to launch Keurig Cold in fall 2015. Furthermore, management re-iterated both 1Q15 and full-year guidance, which implied that financial impact is likely to be minimal in the near term.”
Judy also added, “The proposed Bevyz acquisition makes strategic sense as it offers a differentiated platform to GMCR’s existing hot and cold systems. We view the proposed acquisition as particularly timely given GMCR’s planned launch of Keurig Cold and owning multiple technology and R&D capabilities could ensure better success in the Cold platform. Bevyz offers a dual Hot/Cold platform, sold in Europe. We understand Bevyz is slated for an early 2015 domestic launch, utilizing a CO-2 cartridge for cold beverages (a technological drawback that could be overcome with GMCR’s instant carbonation system).”
According to TipRanks.com Judy Hong 306 out of 3441 analysts and has an average one year return of 21.2% on the stocks he covers with a 80% success rate.
Another analyst at Roth Capital has a Neutral stance on Keurig Green Mountain Inc (GMCR). Anton Brenner issued a note 2 months ago with a Hold rating on the stock and $140.00 price target or 4.55% upside to the last closing price. According to Tip Ranks, Anton is ranked 943 out of 3441 analysts. The stocks he covers yield an average return of 6.2% in the year following his recommendations.
“Our price target of $140 is based on the probability of a mid-teens long-term earnings growth rate and a forward P/E in excess of earnings growth given the potential for sustained double-digit earnings growth. The extensive product selection that Keurig offers with extensive lineup of brands and K-Cup alternatives, which should expand as new products and categories are introduced, should allow the company to maintain a dominant market share in single-serve coffee. Increased focus on the away from home market offers additional upside to growth, while GMCR’s distribution has now expanded beyond North America, with expanded international penetration likely to follow. Household penetration by single-serve brewers still is quite low and is projected to more than double over the next four years.”