PEET Posts Robust Q4 Results On Revenues, Margins

Analyst David E Tarantino of Robert W Baird maintains his "outperform" rating on Peet's Coffee & Tea Inc (NASDAQ: PEET), while raising his estimates for the company. The target price for PEET is set to $42.

Peet's Coffee & Tea reported its Q4 results ahead of the estimates and the consensus, driven by the robust performance of its grocery business and market share gain. PEET’s operating margins rose 176 basis points, reflecting increased contribution from the high-margin specialty business and gains within the retail segment, the analyst says.

“We remain confident that PEET can sustain healthy earnings growth in 2010 (now modeling pro-forma EPS +25%), with results supported by ongoing momentum within the high-margin grocery business,” the analyst adds. Robert W Baird has raised its EPS estimate for FY10 from $1.28 to $1.30.

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