Green Mountain Coffee Roasters, Inc. (NASDAQ:GMCR)

CAPS Rating: 2 out of 5

The Company together with its subsidiaries is engaged in the specialty coffee industry.

Recs

1
Player Avatar tolyshilman (< 20) Submitted: 8/1/2012 4:38:04 PM : Outperform Start Price: $20.20 GMCR Score: +234.88

The biggest downer on GMCR is that the K-cup patents are expiring. Quite a few people expect all of the licensed brands from GMCR to all of a sudden die because Kroger or Supervalu or even Wal-Mart will have their own versions of K-cup. The pertinent question to ask is why would GMCR all of a sudden be hurt by Private Label when other major brands have weathered the storm of Private Label. I expect Green Mountain to continue revenue growth at a more reasonable pace and analysts to come aboard. The strong loyal following that GMCR branded coffee enjoys will continue. If anything brewer sales will increase which will become a positive once GMCR adjust its pricing upwards for the 2013 fiscal year.All in all I expect Green Mountain to hit $36 a share in the next 12-18 months as the market starts valuing the company more in-line with some of it's competitors and starts placing more realistic expectation on a company that controls the entire single cup coffee and tea sector.

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