Trading at 38x consensus 2012 EPS, Peet's Coffee (PEET) isn't cheap heading into tomorrow's Q4...

|About: Peet's Coffee & Tea, Inc. (PEET)|By:, SA News Editor

Trading at 38x consensus 2012 EPS, Peet's Coffee (PEET) isn't cheap heading into tomorrow's Q4 report. But Baird, which recently upgraded Peet, thinks the company's valuation can be justified by its earnings growth potential and clean balance sheet. Janney, however, considers Peet to be overpriced, and believes shares are being propped up by hopes of an acquisition and/or entry into the single-cup coffee market.