Keurig Green Mountain was downgraded to hold from buy at Canaccord Genuity on Thursday after the manufacturer of at-home coffee brewers reported disappointing quarterly earnings amid a sharp increase in competition from the likes of Nespresso. “We can’t forecast meaningful growth,” said analyst Scott Van Winkle, who also lowered his price target by 46% to $65 from $120. While the stock is already down more than 28% in premarket trade, Winkle said valuation assumptions are still “significantly reduced” by the company’s new growth trajectory. The analysts said he can’t recommend buying the stock until either Keurig’s cold-brewing system, KOLD, expected to launch this fall, runs its course, or the direct competitive risk to its K-cup pods starts to moderate.
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