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Keurig Green Mountain Shares Up After Goldman Sachs Rating

Keurig-Green-MountainAlthough Keurig Green Mountain Inc. (NASDAQ: GMCR) stock closed at an impressive $133.25 per share in yesterday’s trading, near the high 52-week value of $140.32, price shot up again today 4.22% to $138.88. At one point, shares of Keurig stock gained 5.1% to $139.98, leading the S&P 500 but then hit a record high of $140.52. The increased value is based on Goldman Sachs’ analysts giving Keurig a Buy and a target per-share price of $166.

According to Judy Hong, a top analyst, Keurig Green Mountain, which started out with single serve coffee, is close to achieving great success thanks to multi-layered, product cycle-driven growth and more than likely, the company will see an increase in sales and earnings over the next few years.

Keurig’s stock received an earlier boost in August when a deal with Kraft Foods (NASDAQ: KRFT) was signed. As the second largest food and beverage company in the world, following Nestle, analysts believe the joint venture between Keurig and Kraft will prove beneficial to both. The deal included multi-year licensing, manufacturing, and distribution of Kraft’s branded coffees in Keurig K-Cup portion packs specific to commercial brewing systems.

Founded in 1981, Keurig Green Mountain, Inc. maintains headquarters in Vermont. Keurig operates coffeemaker and specialty coffee businesses through three segments to include Specialty Coffee, Keurig, and Canadian.

Specialty Coffee is responsible for producing and selling high quality coffees, teas, hot cocoa, and other beverage products that can be prepared either hot or cold. These products also come in traditional packaging, to include whole bean and ground, but also K-Cup portion packs.

The Keurig segment focuses on premium patented single-cup brewing systems that are used at home or while away from home, primarily within North America. Canadian produces and sells coffees, teas, and other beverages, available in various packaging formats such as traditional bag and can but also convenient K-Cup portion packs.

All of Keurig Green Mountain products are sold under several brand names to include Brulerie St. Denis, Van Houtte, Brulerie Mont-Royal, and Orient Express.

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