In a report released yesterday, Michael Lavery from Piper Sandler maintained a Buy rating on Keurig Dr Pepper, with a price target of $38.00.
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Michael Lavery has given his Buy rating due to a combination of factors that support a favorable outlook for Keurig Dr Pepper into 2026 and beyond. He highlights the company’s strong momentum in U.S. refreshment beverages, underpinned by successful new product launches like Dr Pepper creamy coconut and Canada Dry strawberry fruit splash, as well as solid category trends in carbonated soft drinks and energy drinks.
He also points to a significant easing of coffee-related cost pressures in the back half of 2026 as higher-cost hedges roll off, which should support margin improvement into 2027. In addition, Lavery notes that most major packaging and transportation costs for 2026 are already hedged, giving the company good cost visibility and helping to protect earnings, which he maintains at $2.30 for 2026 and $2.50 for 2027 alongside a $38 price target.
Lavery covers the Consumer Defensive sector, focusing on stocks such as The Hershey Company, Mondelez International, and PepsiCo. According to TipRanks, Lavery has an average return of 3.5% and a 47.47% success rate on recommended stocks.
In another report released on April 21, RBC Capital also reiterated a Buy rating on the stock with a $42.00 price target.