Green Mountain Coffee Stock

Associated Press
08/20/09 10:30 AM PDT NEW YORK —


Shares of Green Mountain Coffee Roasters — seller of Keurig coffee products — rose Thursday after a Janney Montgomery Scott analyst said the stock price had been weaker than it should be.

Analyst Mitchell Pinheiro reiterated a "Buy" rating on the stock and said the company's fundamentals had not changed even though the shares had dropped after a recent secondary share offering.

Shares rose $1.99, or 3.6 percent, to $57.60 in afternoon trading.

Investors remain cautious, Pinheiro said, but "we believe the stock is best viewed with a two-year horizon." He said it will benefit from a growing Keurig brewer base, improving margins and better return on investment.

The analyst said he expects Green Mountain Coffee to eventually get 15 percent market share in the U.S. coffee brewer market.