Analyst Peter Grom of UBS maintained a Buy rating on Keurig Dr Pepper, retaining the price target of $35.00.
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Peter Grom has given his Buy rating due to a combination of factors that highlight Keurig Dr Pepper’s strong performance and strategic decisions. The company reported impressive organic sales growth in the third quarter, which exceeded expectations and led to an optimistic outlook for 2025 net sales growth. Additionally, Keurig Dr Pepper’s recent update on the JDE Peet’s acquisition, including securing additional financing, has reduced the anticipated leverage at deal closure, addressing investor concerns about the transaction’s structure.
Furthermore, the acquisition is expected to be accretive, enhancing the company’s financial position. The restructuring of financing and the company’s ability to leverage strong cash flows for further deleveraging are seen as positive steps. With the stock’s valuation remaining attractive compared to historical levels and the potential for synergies, Peter Grom believes the risk-reward profile is favorable, supporting his Buy rating.
Grom covers the Consumer Defensive sector, focusing on stocks such as General Mills, Kraft Heinz, and Coca-Cola. According to TipRanks, Grom has an average return of -3.0% and a 52.00% success rate on recommended stocks.
In another report released yesterday, Bank of America Securities also maintained a Buy rating on the stock with a $33.00 price target.