Keurig Dr Pepper upgraded to Overweight from Equal Weight at Morgan Stanley

Morgan Stanley upgraded Keurig Dr Pepper (KDP) to Overweight from Equal Weight with a price target of $40, up from $38. The firm, which thinks the market is not recognizing the company’s building organic sales and EPS growth prospects compared to consumer packaged goods peers, cites highly visible strength in its U.S. refreshment segment and continued solid international results despite short-term coffee profit risk. The firm, which sees U.S. refreshment being boosted by sustained strong category pricing power, as well as consistent market share gains, sees durability in these growth drivers, the analyst tells investors.