Canaccord Genuity analyst Scott Van Winkle weighed in today with a few insights on Keurig Green Mountain Inc (NASDAQ:GMCR), after the company hosted a presentation discussing its Kold cold-beverage maker. The analyst also maintained a Buy rating on the stock, with a price target of $120, which represents a potential upside of 27% from where the stock is currently trading.
Van Winkle wrote, “We learned more at the KOLD introduction than we expected. We expected a quality product, on-point taste and a good experience, which were all delivered. We found pricing to be above what we expected, the serving size to be more limiting and the initial launch to be more limited geographically. The marketing plan looks excellent and partner support appears robust. We continue to believe that the initial ramp is robust and remain cautious on how deep household penetration will ultimately go.”
The analyst continued, “With some new information about the launch, we are now able to begin to fill in some of the key financial elements of what until now has been the KOLD puzzle. KOLD will retail from $299 to $369 (retailer dependent, also financeable through Keurig), with accompanying pod costs of $0.99 to $1.29 per eight ounce beverage serving. Both price points are higher than our preliminary expectations, more so on the pod price points.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Scott Van Winkle has a total average return of 11.8% and a 54.4% success rate. Winkle has a 22.0% average return when recommending GMCR, and is ranked #273 out of 3602 analysts.