In a report released yesterday, Peter Galbo from Bank of America Securities maintained a Buy rating on Keurig Dr Pepper, with a price target of $33.00.
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Peter Galbo has given his Buy rating due to a combination of factors that highlight Keurig Dr Pepper’s strong performance and strategic initiatives. The company’s third-quarter results showed impressive organic sales growth of 6.2%, surpassing both Bank of America’s and the market’s expectations. This growth was driven by positive volume and pricing dynamics across all segments, particularly in the US Refreshment Beverages sector.
Additionally, Keurig Dr Pepper’s strategic investments, including a significant $7 billion investment to acquire JDE Peet’s, are expected to enhance the company’s financial leverage and contribute to a 10% increase in earnings per share. The company is also committed to maintaining an investment-grade profile for its independent entities post-separation, which is expected to further strengthen its financial position. These factors, combined with an updated fiscal year 2025 sales outlook and a price objective of $33, support the Buy rating.
In another report released on October 23, RBC Capital also reiterated a Buy rating on the stock with a $42.00 price target.
Based on the recent corporate insider activity of 48 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of KDP in relation to earlier this year.