Keurig Dr Pepper price target lowered to $39 from $41 at Jefferies

Jefferies lowered the firm’s price target on Keurig Dr Pepper (KDP) to $39 from $41 and keeps a Buy rating on the shares after “a largely successful” investor day getting investors to move past “errors of the original JDEP deal.” The nature of the deal is tricky, as the new $7B strategic investment swaps out traditional debt with a payout structure that involves a joint venture and preferred equity, but the firm thinks the strategic rationale and accretion targets remain “sensible” and unchanged, the analyst tells investors.