J.P. Morgan analyst Andrea Faria Teixeira maintains $Keurig Dr Pepper (KDP.US)$ with a buy rating, and adjusts the target price from $41 to $40.
According to TipRanks data, the analyst has a success rate of 47.5% and a total average return of 1.5% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Keurig Dr Pepper (KDP.US)$'s main analysts recently are as follows:
Keurig Dr Pepper's third-quarter performance in the U.S. coffee segment was less than satisfactory, with sales and profits not meeting expectations despite a stronger showing in the U.S. refreshment beverage sector. The primary factor for the underperformance in coffee was adverse pricing, accompanied by lackluster coffee pod volumes. Nonetheless, it's assessed that the company's valuation continues to be appealing.
Keurig Dr Pepper's recent earnings report reflected a challenging quarter influenced by aggressive promotional activities in the coffee segment and slightly disappointing international performance. Despite this, the company demonstrated a consistent acceleration in total volume growth for the third consecutive quarter, and its earnings per share met expectations.
The third quarter performance for Keurig Dr Pepper was considered 'decent,' and the company is well-positioned to meet its long-term targets by 2025. The partnership with GHOST is expected to contribute approximately 300 basis points to growth, with an anticipated mid-teens EBITDA margin. Additionally, this deal provides the capacity to adapt strategically to changes in the coffee segment, which places the company in a favorable position.
Note:
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Success rate is the number of the analyst's successful ratings, divided by his/her total number of ratings over the past year. A successful rating is one based on if TipRanks' virtual portfolio earned a positive return from the stock. Total average return is the average rate of return that the TipRanks' virtual portfolio has earned over the past year. These portfolios are established based on the analyst's preliminary rating and are adjusted according to the changes in the rating.
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