BNP downgrades Keurig Dr Pepper to Underperform after poorly received deal

As previously reported, BNP Paribas Exane analyst Kevin Grundy downgraded Keurig Dr Pepper (KDP) to Underperform from Neutral with a $24 price target calling the company’s agreement to merge with JDE Peet (JDEPF) “one of the worst-received deals by investors we can recall in consumer staples.” The deal was poorly received by the market and management and the board have to “sell” it to a shareholder base “that is in an unforgiving mood,” says the analyst, who sees risk to current expectations, deal risk related to synergy realizations and a “credibility setback.”