Keurig Dr Pepper (KDP – Research Report), the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst Dara Mohsenian from Morgan Stanley maintained a Hold rating on the stock and has a $38.00 price target.
Dara Mohsenian has given his Hold rating due to a combination of factors influencing Keurig Dr Pepper’s current market position. The company reported a solid Q4 performance with a notable organic sales growth, which was slightly above market expectations. However, this was partially due to new distribution channels, and the underlying growth remains modest.
Despite the positive momentum in the US refreshment segment and international markets, there are concerns about rising coffee costs and political uncertainties in the US, which could impact future profitability. Additionally, while the company has shown improvements in its coffee category, the visibility remains low, and there are risks associated with SNAP benefits. These factors contribute to a cautious outlook, justifying the Hold rating.
In another report released yesterday, Goldman Sachs also maintained a Hold rating on the stock with a $34.00 price target.