Shares of Peet's Coffee & Tea Inc.(PEET) rose 8% to $46.42 in recent trading Wednesday after one analyst said Peet's is likely to sell coffee for Green Mountain Coffee Roasters Inc. (GMCR) Keurig single-cup coffee brewers.
Janney Capital analyst Mitchell Pinheiro raised Peet's to buy from neutral, speculating a partnership between the coffee companies could be made as soon as March 6.
"We believe adding PEET to the Keurig platform would have the same or greater impact in California as adding Starbucks (SBUX)," Pinheiro said in a research note.
Peet's has strong brand recognition on the West Coast, whereas Green Mountain's market share in West Coast grocery stores is minimal.
Green Mountain shares rose 1.6% to $41.
-Matt Andrejczak, 415-439-6400; AskNewswires@dowjones.com