Nucor earnings beat by $0.08, revenue fell short of estimates
Investing.com - Piper Sandler has reiterated its Overweight rating and $40.00 price target on Keurig Dr Pepper (NASDAQ:KDP) stock, citing improving conditions in the company’s US coffee segment and continued momentum in its US refreshment beverages division. According to InvestingPro data, analyst consensus remains bullish with targets ranging from $34 to $42, while the company maintains impressive gross profit margins of 55.25%.
The research firm expects Keurig Dr Pepper to show good performance in the second quarter of 2025, with potential upside to analyst estimates for the Ghost brand. Piper Sandler anticipates a growth contribution from Ghost in Q2 2025 as it completes a full quarter of distribution through KDP’s network.
Coffee pod demand is improving for the beverage company, though brewer shipments remain soft due to weak consumer demand and retailers working through inventory, according to the research note.
Keurig Dr Pepper is launching a new product called Bloom Pop in the modern soda segment, expanding its beverage portfolio.
Piper Sandler maintained its earnings per share estimates of $2.06 for 2025 and $2.17 for 2026, while keeping its $40 price target unchanged. These projections align with InvestingPro analysts’ expectations of continued profitability, with net income growth forecast for this year.
In other recent news, Keurig Dr Pepper reaffirmed its 2025 financial guidance during investor meetings, anticipating mid-single-digit growth in net sales and high-single-digit growth in adjusted diluted earnings per share. This guidance is provided on a non-GAAP basis, highlighting the company’s focus on constant currency net sales and adjusted EPS. Additionally, Keurig Dr Pepper launched a "Price Lock Event" for new auto-delivery subscribers, allowing them to secure K-Cup pod prices through the end of 2025 amid rising coffee costs. This promotion includes a 25% discount and flexible subscription options for new subscribers.
In corporate developments, JAB Holding Company announced plans to sell 75 million shares of Keurig Dr Pepper’s common stock, reducing its ownership to approximately 4.4%. The sale includes a 60-day lock-up agreement with J.P. Morgan, preventing further sales within this period. Moreover, Keurig Dr Pepper reshuffled its board, transitioning Robert Gamgort to non-employee Chairman and appointing Michael Van de Ven and Lawson Whiting as independent directors. These changes align with the company’s governance practices and strategic direction.
Lastly, Citi noted a 9.3% increase in demand for Keurig Dr Pepper’s canned non-alcoholic beverages, outpacing competitors in the sector. This reflects a positive trend in the US Containers and Packaging (NYSE:PKG) industry, highlighting the company’s strong performance in the beverage can market.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.