TD Cowen analyst Robert Moskow maintained a Hold rating on Keurig Dr Pepper (KDP – Research Report) today and set a price target of $36.00.
Robert Moskow has given his Hold rating due to a combination of factors influencing Keurig Dr Pepper’s performance. The company showed strong results in the first quarter, surpassing expectations in both sales and earnings per share. However, the outlook for the coffee segment has been revised downward due to pricing challenges and potential tariff impacts, which could pressure sales in the near term.
Despite these challenges, the U.S. Refreshment Beverages segment demonstrated robust growth, driven by innovation and strong commercial execution. The contribution from the Ghost brand is expected to increase as its distribution transitions to KDP’s network. Overall, while there are positive elements such as the strong performance of certain segments and strategic initiatives, the uncertainties in the coffee segment and potential tariff impacts warrant a cautious approach, leading to the Hold rating.