Wall Street Roundup: Keurig Green Mountain (GMCR), CareFusion (CFN), The Pantry (PTRY)

Keurig Green Mountain Inc (NASDAQ:GMCR) was initiated at Goldman Sachs Group Inc (NYSE:GS). The firm launched coverage of the stock with a “buy” rating and set a price target of $166 on it. The analysts noted that GMCR was poised for big growth, and they expect the company to realize annual revenue growth of 30% and EPS growth rate of 23%, at least up until 2017. GMCR earned $0.99 in the most recent quarter, ahead of the estimate of $0.88. It generated $1.02 billion in revenue, up 5.7% from the previous year but below the estimate of $1.05 billion for the quarter. Meanwhile, Keurig Green Mountain Inc (NASDAQ:GMCR) is being accused of anticompetitive practices, and the company has been sued. Club Coffee of Canada has sued the company and is now demanding damages of $600 million in connection with the same.

CareFusion Corporation (NYSE:CFN) is being investigated by yet another law firm over possible violation of securities laws or breaches of fiduciary duty. Law office of Brodsky & Smith, LLC announced investigation of the Board of Directors of CFN. The investigations are in connection with the recent deal to sell the company for $12 billion to Becton, Dickinson and Co. (NYSE:BDX). The deal involves payment of $49 per share in cash and issuance of 0.0777 shares of BDX stock to the shareholders of CFN. The investigators cited that CFN agreed to a payment of $40.1 million to settle claims of corrupt practices in promoting their products. There are also claims that the deal may undervalue CareFusion Corporation (NYSE:CFN), which has posted almost above industry average performances in the recent past.

The Pantry, Inc. (NASDAQ:PTRY) had its price target raised to $20 from $19 at RBC Capital. The firm also issued “sector-perform” rating on the stock. The new target price from RBC Capital still reflects more than 8% downside to the prevailing price of the stock of PTRY. Meanwhile, the company issued update about its 4Q performance in that it expects 2.5% improvement in its revenue from the comparable store merchandise. The Pantry, Inc. (NASDAQ:PTRY) further expects retailer fuel margin to improve to $0.13 from $0.107 per gallon in 4Q.

About the Author

Coper graduated from the University of Chicagi with majors in political science and journalism.

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