We have raised our price estimate for Keurig Green Mountain due to a number of factors affecting our forecast including the number of K-Cups sold being increased, potentially lucrative partnerships with top coffee and retail brands, the company entering the tea segment, the number of brewers increasing due to the Subway deal, the average price of K-Cups increasing because of the Nestle deal, the rising price for coffee which has increased the price for a K-Cup, and strong earnings from the company the past two quarters. These factors have increased our optimism in the company’s ability to deliver strong results in the future and have led to our increasing our price target for the company.
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