NEW YORK (TheStreet) -- Shares of Keurig Green Mountain Coffee  (GMCR) are percolating 2.5% higher Thursday thanks to a positive research report from Morgan Stanley. 

On CNBC's "Stop Trading" segment, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, noted Morgan Stanley initiated the stock with an overweight rating and a $160 price target. Shares are currently close to $136.

The company's planned cold beverage machine, in a deal with Dr Pepper Snapple Group (DPS) , should add a "gigantic amount to the valuation," Cramer said, agreeing with the analyst's assessment of Keurig Green Mountain. 

Keurig Green Mountain GMCR data by YCharts

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Coca-Cola (KO) - Get Coca-Cola Company Report already owns a stake in Keurig, he said. He predicts Keurig is "going to be the dominate appliance in your kitchen and the stock should go much higher," which means Coca-Cola will likely have no choice but to acquire the rest of the company at some point.

-- Written by Bret Kenwell

Follow @BretKenwell

At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.