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