Activist investor Starboard Value has reportedly taken a stake in Keurig Dr Pepper (KDP), shaking up the beverage giant just weeks after its controversial deal involving JDE Peet’s (JDEPY). Following the announcement, KDP stock gained 2.32% on Monday, as traders weighed the possibility of fresh momentum and strategic shifts ahead. The stock was down by 0.19% in after-hours trading.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Keurig Dr Pepper is a beverage company known for its popular brands like Schweppes, 7UP, and Canada Dry. Meanwhile, Starboard Value is an activist investment firm recognized for taking influential stakes in underperforming companies and pushing for strategic changes to boost shareholder value and unlock growth potential.
Activist Starboard Buys Into Keurig Dr Pepper
According to the Financial Times, which first reported the news, Starboard Value started building its position soon after Peet’s deal was announced in August and has reportedly been in private discussions with Keurig Dr Pepper’s management and board in recent weeks. The exact size of Starboard’s stake in KDP and its requests from the company are not yet known. Meanwhile, sources say Starboard’s talks with KDP have so far focused on better execution and boosting investor confidence, rather than launching a public campaign.
Notably, KDP stock has dropped more than 25% since the company announced its all-cash plan to acquire JDE Peet’s and separate its coffee and soft drink businesses. Because the deal doesn’t require a shareholder vote, Starboard has no direct way to block it.
Overall, Starboard’s move shows its confidence in Keurig Dr Pepper’s long-term potential and hints it may push for changes after the Peet’s deal backlash.
What Is the Target Price for KDP?
According to TipRanks, KDP stock has received a Moderate Buy consensus rating based on 10 Buys, six Holds, and one Sell assigned in the last three months. The average Keurig Dr Pepper share price target is $33.40, suggesting a potential upside of 26.42% from the current level.
