THUNDERBIRD SCHOOL OF GLOBAL MANAGEMENT A01-14-0009 GRAEME RANKINE Coffee INVENTORY MANAGEMENT UNDER LIFO AT FARMER BROTHERS Coffee CompANY Three years of acquisition integration and investments as well as extraordinarily high coffee costs appear to be behind them. A modest improvement in margins will highlight its severe undervalua- tion. Initiating coverage with a BUY rating.... We forecast EPS of $0.11 in FY:12, growing to $.68 in FY:13. Our 12-month price target is $11.00.