As if it didn't need any more perking up, Keurig Green Mountain is up 6.6% on Friday after announcing a new deal with Starbucks.
The company known as Green Mountain Coffee Roasters until this week will offer Starbucks more selections in the type of "K-cups" it can produce. In exchange for increased access, Starbucks has relinquished its right to exclusivity in Keurig's premium coffee packs.
Keurig Green Mountain has been on a caffeine rush so far in 2014 and is up 50% so far this year.
John Kosar, Director of Research at Asbury Research, thinks the buzz will continue and Keurig Green Mountain's stock will head higher based on the stock's technicals.
"On a very near-term basis, we're monthly oversold," says Kosar on CNBC's Street Signs' Talking Numbers segment. "We're sitting up above support at the 50-day moving average, which is at $96. And, we're negotiating that $116 area, which was the high from 2011."
Though Kosar doesn't believe it will be a straight move up, he thinks Keurig Green Mountain will get there.
"I think can eventually end up at $130 - $135-ish later on this year," says Kosar "which is about 18% from where we are right now."
Steve Cortes, founder of Veracruz TJM, believes the fundamentals lead to more pessimism for Keurig Green Mountain. He cites higher input costs as a reason the company may have a tough time ahead.
"I do not believe in this company or similar companies for that matter," says Cortes. "All agricultural prices are absolutely soaring, from soybeans to cattle to coffee. That is bad news for the processors and sellers of those commodities."
Cortes notes that coffee beans have nearly doubled in the past year. The iPath Dow Jones-UBS Coffee ETN (JO), has nearly doubled since the start of 2014.
"It went basically from $20 to $40 already this year," says Cortes. "That is great news for Juan Valdez [but] it is not great news for Green Mountain and similar companies."
To see the full discussion on Keurig Green Mountain with Kosar on the technicals and Cortes on the fundamentals, watch the video above.
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- Green Mountain Coffee Roasters