Sunday, January 13, 2013

GMCR, SBUX are Top Picks for Janney Analysts

Green Mountain Coffee Roasters (GMCR) investors won’t want to remember 2011, or at least the second half of the year. The stock is up 36% for the year, but down 50% in the past six months.

But 2012 should stack up a little better, Janney analyst Mitchell Pinheiro writes in the firm’s rundown of Best Ideas for the coming year.

“Persistent short attacks through the back-half of 2011 have weighed heavily on the stock, further exacerbated by a top-line miss in 4Q11. It appears the underlying fundamental story has largely been forgotten amidst the chaos, and as such current levels present a compelling entry point.”

Starbucks (SBUX), which has made other 2012 top picks lists we’ve seen, is also poised for outperformance in 2012, wrote Janney analyst Mark Kalinowski. Among Starbucks’ advantages:

  • Iindustry sources tell Kalinowski that the company’s same store sales are trending above his 4% growth forecast for fiscal 2012.
  • The launch of the new Starbucks Blonde should be a big success.
  • The company may be able to lock in low coffee costs for 2013.
  • It’s K-Cup partnership with GMCR is building momentum.

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