Keurig Dr Pepper: UBS maintains Buy, PT down to $35 from $40.

Keurig Dr Pepper: UBS maintains Buy, PT down to $35 from $40.

Title: Keurig Dr Pepper: UBS Maintains Buy Rating, Price Target Adjusted Down to $35

UBS Group has maintained its Buy rating on Keurig Dr Pepper (KDP) stock but has adjusted its price target down to $35 from the previous $40. This update reflects recent developments and the company's financial performance. [2]

The beverage giant, Keurig Dr Pepper, has been in the news for its acquisition of Dutch coffee group JDE Peet's for $18 billion. The deal, which is expected to close soon, has led to increased debt for the company, with analysts at S&P Global expecting Keurig's post-deal leverage to be in the mid-to-high 5x range. Despite this, UBS remains optimistic about the company's long-term prospects, highlighting its strong market position and growth potential. [1]

The stock has seen significant 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. Several other large investors, including ST Germain D J Co. Inc. and Continuum Advisory LLC, have also increased their holdings in the company. [2]

In addition to the acquisition, 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 Keurig Dr Pepper to post 1.92 EPS for the current fiscal year. [2]

Keurig Dr Pepper's stock has been trading in the range of $30.12 to $38.28 over the past year, with a current price of $35.18. The company's market capitalization stands at $47.79 billion, and it has a debt-to-equity ratio of 0.56. [2]

While the acquisition of JDE Peet's has increased Keurig's debt profile, UBS's updated price target and Buy rating suggest that the market remains bullish on the company's ability to manage its debt and drive growth. Investors should continue to monitor the company's progress as it integrates JDE Peet's and navigates the increased debt load. [1]

References:
[1] https://finance.yahoo.com/news/p-puts-keurig-dr-pepper-145216245.html
[2] https://www.marketbeat.com/instant-alerts/filing-hsbc-holdings-plc-grows-stock-holdings-in-keurig-dr-pepper-inc-kdp-2025-08-21/