Deutsche Bank Lowers Keurig Dr Pepper Price Target to $38 Despite "Buy" Rating

Deutsche Bank analyst Steve Powers maintained a "Buy" rating for Keurig Dr Pepper (KDP) but lowered the price target from $40.00 to $38.00. This reflects a cautious outlook for the company in the near term. Other analysts have also made recent adjustments, including Barclays, UBS, and JP Morgan. The average target price for KDP is $38.56, with a high estimate of $44.00 and a low estimate of $34.00.

In a recent development, Deutsche Bank analyst Steve Powers maintained a "Buy" rating for Keurig Dr Pepper (KDP) but lowered the price target from $40.00 to $38.00. This adjustment reflects a cautious outlook for the company in the near term. Other analysts have also made recent adjustments to their price targets, including Barclays, UBS, and JP Morgan. The average target price for KDP is now $38.56, with a high estimate of $44.00 and a low estimate of $34.00.

The price target revision comes amidst Keurig Dr Pepper’s announcement of its intention to acquire JDE Peet’s in an all-cash transaction valued at approximately €15.7 billion. This acquisition has prompted varied reactions from analysts. UBS, for instance, maintained its "Buy" rating with a $40.00 price target, while TD Cowen reiterated a "Hold" rating with a $36.00 price target, noting increased exposure to the coffee segment for shareholders. However, HSBC downgraded Keurig Dr Pepper from "Buy" to "Hold," reducing its price target to $30.00 due to concerns about the company’s leverage following the acquisition. RBC Capital, on the other hand, maintained an "Outperform" rating with a $42.00 price target despite the stock’s negative reaction to the announcement. Additionally, Moody’s has placed Keurig Dr Pepper’s ratings under review for a potential downgrade, citing the acquisition and planned company split as factors.

Despite the recent negative reaction to the acquisition news, UBS noted that the strategic rationale for separating the businesses makes sense and that strong year-one accretion of the transaction (estimated at 10%+) and potential sum-of-the-parts upside are being overlooked. UBS expects KDP shares to remain range-bound in the near term as strong fundamental performance will likely be overshadowed by the transaction, but believes the enterprise is "meaningfully undervalued" at current levels with their analysis pointing to more than 20% potential upside.

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References:
[1] https://www.investing.com/news/analyst-ratings/ubs-lowers-keurig-dr-pepper-stock-price-target-to-35-on-acquisition-news-93CH-4212875
[2] https://www.investing.com/news/transcripts/arista-networks-at-deutsche-banks-2025-technology-conference-revenue-guidance-boost-93CH-4213227