Keurig Dr Pepper, Inc (NASDAQ:KDP) Receives Average Rating of "Moderate Buy" from Analysts

Key Points

• Analysts give Keurig Dr Pepper a “Moderate Buy” consensus: Nine analysts rate the stock a buy and nine recommend holding it, with an average 12-month price target of $34.00.
• Second-quarter results beat expectations: Adjusted EPS was $0.57 versus a $0.54 consensus estimate, while revenue reached $7.31 billion, up 75.6% year over year and aided significantly by the JDE Peet’s acquisition.
• Despite the earnings beat, guidance was reaffirmed rather than raised: Investors remain focused on execution risks tied to the planned business separation, related costs and elevated leverage; shares opened at $30.01, down 1.2%.

Keurig Dr Pepper, Inc (NASDAQ:KDP - Get Free Report) has received an average recommendation of "Moderate Buy" from the eighteen ratings firms that are currently covering the firm, Marketbeat Ratings reports. Nine investment analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company. The average 1-year price target among brokers that have covered the stock in the last year is $34.00.

A number of brokerages have recently issued reports on KDP. UBS Group raised their target price on shares of Keurig Dr Pepper from $38.00 to $39.00 and gave the stock a "buy" rating in a research report on Friday. Royal Bank Of Canada reiterated an "outperform" rating and issued a $42.00 price target on shares of Keurig Dr Pepper in a research report on Tuesday. Zacks Research cut shares of Keurig Dr Pepper from a "strong-buy" rating to a "hold" rating in a research note on Monday, May 18th. Evercore set a $30.00 price objective on shares of Keurig Dr Pepper in a research report on Friday, April 24th. Finally, Barclays upgraded shares of Keurig Dr Pepper from an "equal weight" rating to an "overweight" rating and lifted their price objective for the company from $30.00 to $36.00 in a research note on Thursday, June 25th.

Keurig Dr Pepper News Roundup

Here are the key news stories impacting Keurig Dr Pepper this week:

• Positive Sentiment: Q2 results exceeded expectations. KDP reported adjusted earnings of $0.57 per share, above consensus estimates of roughly $0.54-$0.55, while revenue reached $7.31 billion versus expectations of $7.23 billion. EPS increased from $0.49 a year earlier. Keurig Dr Pepper Reports Q2 Results and Reaffirms Guidance for 2026
• Positive Sentiment: Growth benefited from U.S. Refreshment Beverages and JDE Peet’s. Management and analysts pointed to continued momentum in the U.S. beverage business, contributions from the JDE Peet’s acquisition, and efficiency initiatives as key drivers of the quarterly performance. Reported revenue rose 75.6% year over year, although the increase was significantly affected by the acquisition. Keurig Q2 Earnings and Sales Beat Estimates on JDE Peet’s Strength
• Positive Sentiment: RBC Capital maintained a Buy rating. The continued bullish analyst stance provides support for KDP’s investment case following the earnings report. RBC Capital Remains a Buy on Keurig Dr Pepper
• Neutral Sentiment: Full-year guidance was reaffirmed rather than increased. KDP maintained its 2026 constant-currency sales outlook of $25.9 billion to $26.4 billion, broadly in line with the approximately $26.2 billion consensus estimate, and reaffirmed its adjusted EPS outlook. This limits the potential for a major positive earnings-revision catalyst. Keurig Dr Pepper Maintains Annual Forecasts After Quarterly Results Beat
• Negative Sentiment: Investors remain focused on execution risk. The company is continuing work to separate into two businesses and is targeting a pro forma year-end management leverage ratio of 4.1 times. The separation costs, operational complexity and elevated leverage could temper enthusiasm despite the quarterly beat. Keurig Dr Pepper Posts Higher Sales as Separation Work Continues

Keurig Dr Pepper Stock Down 1.2%

Shares of NASDAQ KDP opened at $30.01 on Friday. The stock has a market cap of $40.83 billion, a PE ratio of 30.31, a price-to-earnings-growth ratio of 1.39 and a beta of 0.40. The company has a quick ratio of 2.12, a current ratio of 0.48 and a debt-to-equity ratio of 0.74. Keurig Dr Pepper has a 52-week low of $24.88 and a 52-week high of $35.94. The business has a 50-day moving average price of $31.19 and a 200 day moving average price of $29.13.

Keurig Dr Pepper (NASDAQ:KDP - Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The company reported $0.57 EPS for the quarter, topping the consensus estimate of $0.54 by $0.03. Keurig Dr Pepper had a return on equity of 10.80% and a net margin of 7.10%.The company had revenue of $7.31 billion for the quarter, compared to analyst estimates of $7.23 billion. During the same quarter in the previous year, the company posted $0.49 earnings per share. The firm's revenue was up 75.6% compared to the same quarter last year. Equities research analysts forecast that Keurig Dr Pepper will post 2.29 earnings per share for the current year.

Keurig Dr Pepper Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, July 10th. Investors of record on Friday, June 26th were issued a dividend of $0.23 per share. The ex-dividend date of this dividend was Friday, June 26th. This represents a $0.92 dividend on an annualized basis and a dividend yield of 3.1%. Keurig Dr Pepper's dividend payout ratio (DPR) is currently 68.15%.

Hedge Funds Weigh In On Keurig Dr Pepper

Several institutional investors have recently added to or reduced their stakes in the stock. NewEdge Advisors LLC grew its stake in shares of Keurig Dr Pepper by 30.6% in the 1st quarter. NewEdge Advisors LLC now owns 15,488 shares of the company's stock valued at $530,000 after purchasing an additional 3,627 shares during the last quarter. Empowered Funds LLC raised its stake in shares of Keurig Dr Pepper by 248.0% during the first quarter. Empowered Funds LLC now owns 69,801 shares of the company's stock worth $2,389,000 after purchasing an additional 49,741 shares during the last quarter. Woodline Partners LP lifted its holdings in shares of Keurig Dr Pepper by 49.2% during the first quarter. Woodline Partners LP now owns 100,870 shares of the company's stock worth $3,452,000 after purchasing an additional 33,258 shares during the period. Sivia Capital Partners LLC acquired a new stake in shares of Keurig Dr Pepper during the second quarter worth $328,000. Finally, Jump Financial LLC grew its position in Keurig Dr Pepper by 253.6% in the 2nd quarter. Jump Financial LLC now owns 76,089 shares of the company's stock valued at $2,516,000 after buying an additional 54,571 shares during the last quarter. Institutional investors and hedge funds own 93.99% of the company's stock.

Keurig Dr Pepper Company Profile

Keurig Dr Pepper NASDAQ: KDP is a North American beverage company formed in July 2018 through the combination of Keurig Green Mountain and Dr Pepper Snapple Group. The company designs, manufactures, markets and distributes a wide range of hot and cold beverages and related equipment, combining Keurig's single‑serve coffee systems with a large portfolio of carbonated and noncarbonated drink brands. It operates a network of manufacturing, packaging and distribution facilities to supply retail, foodservice and e-commerce channels across its served markets.

The company's product mix includes single‑serve coffee brewers and coffee pods under the Keurig brand as well as a broad assortment of branded beverages.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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