Keurig Dr Pepper stock price target lowered to $38 at JPMorgan

Investing.com - JPMorgan has lowered its price target on Keurig Dr Pepper (NASDAQ:KDP) to $38.00 from $39.00 while maintaining an Overweight rating ahead of the company’s second-quarter earnings report. The stock, currently trading at $33.21, has shown relatively low price volatility with a beta of 0.48. According to InvestingPro data, the company maintains impressive gross profit margins of 55.25% and offers a dividend yield of 2.77%.

The beverage company, with a market capitalization of $45.1 billion, is scheduled to report its Q2 2025 earnings on Thursday, July 24, before the market opens, according to JPMorgan’s analysis. InvestingPro analysis indicates the company maintains a FAIR overall financial health score, with net income growth expected this year. Get access to 6 more exclusive ProTips and comprehensive analysis in the Pro Research Report.

JPMorgan has trimmed its Q2 2025 constant-currency revenue growth estimate to 6.2% from 6.9% previously, and adjusted its EPS growth forecast to 7.4% from 7.7%, while maintaining its earnings per share estimate at $0.49.

The revised estimates place JPMorgan below the current consensus for Q2 2025 constant-currency revenue growth of 6.9%, but slightly ahead of the consensus EPS growth projection of 6.8% (with EPS at $0.48).

Despite the target reduction, JPMorgan noted that Keurig Dr Pepper’s CEO Cofer continues to express comfort with the company’s 2025 guidance for mid-single-digit percentage constant-currency revenue growth and high-single-digit percentage constant-currency EPS growth, despite challenging macroeconomic conditions.

In other recent news, Keurig Dr Pepper reaffirmed its 2025 financial guidance during investor meetings, maintaining expectations for mid-single-digit net sales growth and high-single-digit adjusted diluted earnings per share growth. This guidance is based on non-GAAP measures, which the company uses to supplement its financial reporting. Piper Sandler has maintained an Overweight rating on Keurig Dr Pepper, citing positive trends in the company’s U.S. coffee segment and refreshment beverages division, and kept its earnings per share estimates for 2025 and 2026 unchanged. Additionally, Keurig Dr Pepper has launched a "Price Lock Event" for new auto-delivery subscribers to secure K-Cup pod prices amid rising coffee costs, offering a 25% discount and price stability through the end of 2025.

In another development, JAB Holding Company plans to sell 75 million shares of Keurig Dr Pepper, reducing its ownership to about 4.4% of the company’s outstanding common stock. This sale includes a 60-day lock-up agreement with J.P. Morgan, preventing further sales during this period. Meanwhile, the U.S. Containers and Packaging (NYSE:PKG) sector, which includes Keurig Dr Pepper’s canned beverages, received a positive outlook from Citi, highlighting a 9.3% increase in demand for Keurig’s non-alcoholic canned beverages. Keurig Dr Pepper also introduced a new product, Bloom Pop, in the modern soda segment, expanding its beverage portfolio. These developments reflect the company’s ongoing efforts to strengthen its market position and provide value to its customers.

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