Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) hosted an investor day on Tuesday. The event was hidden behind the pomp and circumstance of the iPhone 5s launch, but analysts who attended were pleased with the company’s showing. The day resulted in at least one upgrade on the firm’s price target, and a strengthening of conviction among several others.
Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) shareholders are blessing 2013. The year so far has seen shares rise by more than 100 percent. With any rise so sizable, it can be difficult to identify the right time to sell out and lock in gains. For investors thinking about holding on for a while longer, Tuesday’s event seems to have inspired analysts’ faith in the company.
Green Mountain investors day
According to a report from Cannacord’s Scott Van Winkle, the investors day gave a strong impression that Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) has several years of strong revenue growth and earnings growth on the rise, in sales of its Keurig coffee maker range and its diversification into other businesses.
Van Winkle seems confident in the impression he left the investor day with. He keeps his price target of $95 on Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR), and continues to rate the company a Buy. Analysts from William Blair and Imperial Capital left with the same impression. Imperial Capital boosted its target on the company to $100, and continued to rate the company to Outperform.
In essence, the investor day impressed upon the analysts that the dreams of double digit growth that seemed to be emanating from their spreadsheets were not hallucinogenic. Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) has strong fundamentals in the short and medium term, and the company is primed for growth, according to their reports.
GMCR diversification
Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) is facing huge competition in the coffee machine market, as other big companies move in and Generic K-Cups become more popular among consumers. The company has a plan to deal with that, however, which involves changing itself from a coffee-centered company into a diversified consumer product company.
- That means that Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR)’s plans for the future include bottled water, soda, cold coffee, and possibly more. Analysts believe that the company is primed for growth in the coming year, but the stock is trading at more than 28 P/E, meaning a lot of that is already priced in.
