Wells Fargo analyst Christopher Carey has maintained their bullish stance on KDP stock, giving a Buy rating on April 17.
Christopher Carey has given his Buy rating due to a combination of factors impacting Keurig Dr Pepper’s (KDP) performance and outlook. Despite KDP’s stock being a laggard in year-to-date performance among peers, it has shown a notable rebound in the past month. This resurgence is attributed to the positive trends in the company’s Coffee segment, which have been underperforming but are now showing signs of stabilization and growth. Additionally, the company’s stock is currently valued lower than its potential suggests, presenting an attractive opportunity for investors.
Moreover, Carey notes that KDP’s Cold beverage segment appears to be on track to meet expectations, bolstered by strong contributions from partnerships. The anticipation of new product launches, like Dr Pepper Creamy Coconut, is expected to support continued growth. Coupled with improved free cash flow conversion projected for the coming years and a price-to-earnings ratio that suggests the stock is undervalued, the overall narrative for KDP is looking increasingly positive, providing the rationale for the Buy recommendation.
Carey covers the Consumer Defensive sector, focusing on stocks such as Keurig Dr Pepper, General Mills, and Clorox. According to TipRanks, Carey has an average return of 4.4% and a 51.92% success rate on recommended stocks.
In another report released on April 17, RBC Capital also maintained a Buy rating on the stock with a $41.00 price target.
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Keurig Dr Pepper (KDP) Company Description:
Massachusetts-based Keurig Dr Pepper, Inc. operates as a non-alcoholic beverage company in the US and internationally. It operates through four segments: Coffee Systems, Packaged Beverages, Beverage Concentrates, and Latin America Beverages.
Read More on KDP:
- Keurig Dr Pepper price target raised to $36 from $32 at Barclays
- Keurig Dr Pepper price target lowered to $35 from $37 at Jefferies
- Keurig Dr Pepper call volume above normal and directionally bullish
- Keurig Dr Pepper backs FY24 adjusted EPS growth of high single digits
- Keurig Dr Pepper announces upcoming Keurig brewer and K-Cup pod offerings
