JPMorgan upgrades JDE Peet’s stock rating to Neutral on Keurig Dr Pepper deal

Published 25/08/2025, 11:30
JPMorgan upgrades JDE Peet’s stock rating to Neutral on Keurig Dr Pepper deal

Investing.com - JPMorgan has upgraded JDE Peet’s N.V. (AS:JDEP) stock rating from Underweight to Neutral and raised its price target to EUR31.85 from EUR20.50 following the announcement of Keurig Dr Pepper’s acquisition offer.

Keurig Dr Pepper and JDE Peet’s announced a definitive agreement for an all-cash transaction valuing JDE Peet’s at EUR15.7 billion, or EUR31.85 per share, representing a 20% premium to Friday’s closing price.

The transaction is expected to close around mid-2026, with approximately 69% of JDE Peet’s voting block, including JAB, already committed to vote in favor of the deal.

JPMorgan raised its 2025 earnings per share estimate by 8% following JDE Peet’s first-half 2025 results, which beat expectations for top-line, EBIT, and EPS, despite anticipated volume and mix pressure in the second half of 2025.

Based on JPMorgan’s revised numbers, Keurig Dr Pepper’s offer implies a take-out value of 15.8x price-to-earnings for 2026 and 10.8x EV/EBITDA for 2026, compared to the overall European food sector at 16.8x and 11.8x respectively.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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