Kepler Capital Reiterates Buy Rating on Unilever with €64 Price Target

Kepler Capital analyst Karel Zoete maintains a Buy rating on Unilever with a price target of €64.00. The analyst consensus is a Moderate Buy with an average price target of €5,168.96, implying an 11.59% upside from current levels. Unilever has a one-year high of €5,034.00 and a one-year low of €4,311.00. Corporate insider sentiment is negative, with 93 insiders selling their shares over the past quarter.

UBS Group has adjusted its price target for Keurig Dr Pepper (KDP) stock to $35 from the previous $40, while maintaining a Buy rating. This update comes amidst the beverage giant's acquisition of JDE Peet's, which has led to increased debt and uncertainty in the market. Despite the "caffeine crash" in KDP's stock price following the acquisition announcement, UBS remains optimistic about the company's long-term prospects.

The acquisition of JDE Peet's for approximately €15.7 billion ($18.37 billion) has significantly impacted KDP's financial profile. The deal, which is expected to close soon, has led to increased debt, with analysts at S&P Global expecting KDP's post-deal leverage to be in the mid-to-high 5x range [1]. However, UBS maintains that KDP's strong market position and growth potential justify the company's long-term prospects.

The stock has seen substantial institutional investment, with HSBC Holdings PLC increasing its stake by 29.5% in the first quarter, owning nearly 3 million shares worth over $102 million [2]. Several other large investors, including ST Germain D J Co. Inc. and Continuum Advisory LLC, have also increased their holdings in the company.

Keurig Dr Pepper has reported strong earnings, with a return on equity of 11.05% and a net margin of 9.75% in the latest quarter. The company's revenue for the quarter was up 6.1% year-over-year, indicating robust growth. Analysts expect KDP to post 1.92 EPS for the current fiscal year [2].

UBS's sum-of-the-parts analysis suggests that the market reaction to the acquisition has been excessive, and the strategic rationale for separating the businesses makes sense. The firm expects KDP shares to remain range-bound in the near term as strong fundamental performance is likely to be overshadowed by the transaction. However, UBS believes the enterprise is "meaningfully undervalued" at current levels with potential upside of more than 20% [3].

The acquisition will lead to the creation of two independent, U.S.-listed companies: Beverage Co. and Global Coffee Co. Upon separation, Global Coffee Co. will be the world's largest pure-play coffee company, while Beverage Co. will be a challenger in the North American refreshment beverage market. KDP expects the transaction to unlock incremental operating and financial benefits, including approximately $400 million in anticipated cost synergies over three years and EPS accretion in the first year [4].

Investors should continue to monitor KDP's progress as it integrates JDE Peet's and navigates the increased debt load. Despite the recent setbacks, UBS's updated price target and Buy rating suggest that the market remains bullish on KDP's ability to manage its debt and drive growth.

References:
[1] https://www.ainvest.com/news/keurig-dr-pepper-ubs-maintains-buy-pt-35-40-2508/
[2] https://www.marketbeat.com/instant-alerts/filing-hsbc-holdings-plc-grows-stock-holdings-in-keurig-dr-pepper-inc-kdp-2025-08-21/
[3] https://www.investing.com/news/analyst-ratings/ubs-lowers-keurig-dr-pepper-stock-price-target-to-35-on-acquisition-news-93CH-4212875
[4] https://www.foodengineeringmag.com/articles/103217-keurig-dr-pepper-to-acquire-jde-peets-for-18b