Analyst Bryan Spillane from Bank of America Securities maintained a Buy rating on Keurig Dr Pepper (KDP – Research Report) and keeping the price target at $41.00.
Bryan Spillane’s rating is based on Keurig Dr Pepper’s strong financial performance in the first quarter of 2025, where the company reported an adjusted EPS of $0.42, surpassing both Bank of America’s and the market’s expectations of $0.38. This outperformance was driven by better-than-expected operating profit and additional income from the monetization of their COCO stake. The company also maintained its financial outlook for the fiscal year 2025, managing its upside prudently against a conservative consumer outlook and potential tariff impacts.
Additionally, Keurig Dr Pepper demonstrated impressive organic sales growth of 6.4%, significantly higher than the expected 1.4%, driven by positive volume/mix and net pricing. The acquisition of GHOST contributed notably to this growth. Despite challenges such as green coffee cost pressures, the company managed to exceed sales and gross profit estimates. These factors, combined with a maintained Buy rating and a price objective of $41, reflect the company’s attractive portfolio and long-term growth potential, aligning with its non-alcoholic beverage peers.
According to TipRanks, Spillane is a 4-star analyst with an average return of 4.5% and a 57.37% success rate. Spillane covers the Consumer Defensive sector, focusing on stocks such as Keurig Dr Pepper, Molson Coors, and Colgate-Palmolive.
In another report released today, Barclays also maintained a Buy rating on the stock with a $37.00 price target.