Zacks Analyst Blog Highlights: Green Mountain Coffee Roasters, McDonald's, Lowes and Harris Corp.

CHICAGO--(BUSINESS WIRE)--

Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Green Mountain Coffee Roasters (Nasdaq: GMCR), McDonald's (NYSE: MCD), Lowes (NYSE: LOW) and Harris Corp. (NYSE: HRS).

See the latest posts to the Analyst Blog by visiting: http://at.zacks.com/?id=2673

    Here are highlights from Monday's Analyst Blog:

    "Fair Trade" for Green Mtn Coffee

Green Mountain Coffee Roasters (Nasdaq: GMCR) is a growth company in the premium coffee and tea industry. Management is implementing a growth strategy based on a multi-channel geographic penetration business model. The company is expanding geographically and by adding new relationships, such as with McDonald's (NYSE: MCD) and Lowes (NYSE: LOW).

Having generated 17 consecutive quarters of double-digit sales growth, the stock is appropriately valued at a premium P/E (price-to-earnings ratio). The Hold rating is maintained.

Green Mountain Coffee Roasters is currently selling at 52.1 times trailing 12-month EPS (earnings per share), reflecting the company's higher-than-average growth profile, given the company's exposure to the attractive premium coffee industry and successful business model. Over the last few years, the stock has traded in a very wide P/E range of 14 to 55, with the stock only having traded above a 40 P/E since November 2006.

Net sales have grown at a 22.3% five-year compound annual growth rate (CAGR). Better-than-expected quarterly results along with management's improved outlook for 2007 bode well for the company. However, declining margins and increased competition in supermarkets are concerning. The target price is $76.25, which is a 56 P/E multiple on 12-month trailing earnings.

Harris Corp. with a $60 Target

We maintain our Buy rating for Harris Corp. (NYSE: HRS), a leading government electronics supplier, following its third quarter (ended March) of fiscal 2007 earnings results, above our estimates. Higher defense expenditures by the U.S. government resulted in the company's organic revenue growth reaching 14% over the quarter. Additionally, new expansion drives in the South Asia, Middle East, Eastern Europe, & African markets also improved the company's top-line. The Falcon II & Falcon III tactical radio products continue to receive zealous market acceptance, generating a healthy backlog of $4 billion.

Harris has a strong pipeline with a differentiated product base addressing a market size of more than $6 billion. Recent approval of $600 million share-repurchase program will likely further improve shareholder return. We believe earnings momentum remains strong and, therefore, view that the company will outperform over the next six to twelve months.

See the latest posts to the Analyst Blog by visiting http://at.zacks.com/?id=2645

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