Shares of Keurig Green Mountain (GMCR) sank about 3% in Thursday morning trading after an investment firm began covering the GMCR stock.
BTIG issued a research note on Wednesday indicating that it had initiated coverage of GMCR. Analyst Theo Brito put a “Neutal” rating on GMCR shares. He also set a price target of $124 per share for GMCR, Benzinga notes.
Brito bases his rating for GMCR stock on his estimate that GMCR market penetration is about twice what other more enthusiastic analysts are estimating. He also thinks that GMCR’s recent partnerships with other companies could end up cannibalizing its own sales.
Last week, GMCR announced that it was expanding its partnership with sandwich chain Subway to put Keurig brewing machines in all North American Subway restaurants.
GMCR stock closed at $126.09 on Wednesday.
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