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Keurig Dr Pepper Inc’s stock reached a 52-week low, hitting $26.57, amid a challenging year for the beverage company. According to InvestingPro data, the stock’s technical indicators suggest oversold conditions, while maintaining impressive gross profit margins of nearly 55%. Over the past year, the stock has experienced a significant decline, with a 1-year change of -30.04%. This downturn reflects broader market trends and specific challenges facing the company, impacting investor sentiment and leading to the recent dip in stock value. The company’s performance will be closely monitored as it navigates these financial headwinds. Despite the decline, the stock currently offers a 3.39% dividend yield, and analysts maintain price targets ranging from $30 to $42. InvestingPro analysis suggests the stock is currently undervalued, with additional insights available in the comprehensive Pro Research Report covering this top beverage company.
In other recent news, Keurig Dr Pepper has declared a regular quarterly cash dividend of $0.23 per share, payable on October 10, 2025, to shareholders of record as of September 26, 2025. The company has also announced plans to acquire JDE Peet’s in an all-cash transaction valued at approximately €15.7 billion. Following this acquisition, Keurig Dr Pepper intends to split its coffee assets from its North American refreshment beverage business into two independent, U.S.-listed companies through a tax-free spinoff.
In a strategic move, Olivier Lemire has been appointed as president of the U.S. coffee division, succeeding Patrick Minogue. Analysts have responded to these developments, with Piper Sandler and UBS both lowering their price targets for Keurig Dr Pepper to $35.00 from $40.00, citing concerns about the company’s post-acquisition leverage. Piper Sandler estimates the company’s pro-forma leverage will reach approximately 5.2x by the end of 2026, before decreasing to around 4.3x by the end of 2027. Despite these concerns, UBS has maintained a Buy rating on the stock, while Piper Sandler continues to rate it as Overweight.
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