UPDATE: JPMorgan Upgrades Keurig Dr Pepper (KDP) to Overweight

(Updated - March 19, 2021 4:56 AM EDT)

JPMorgan analyst Peter Grom upgraded Keurig Dr Pepper (NASDAQ: KDP) from Neutral to Overweight with a price target of $39.00 (from $33.00).

The analyst comments "We are upgrading Keurig Dr Pepper (KDP) to Overweight from our prior Neutral rating. While we’ve admittedly missed some of KDP’s multiple re-rating (NTM P/E has expanded ~200 bps since the beginning of March vs. KO/PEP ~55 bps average and NTM EV/EBITDA has expanded ~110 bps since beginning of March vs. KO/PEP ~30 bps), we see further potential for multiple expansion for KDP, though still likely at a modest discount to KO/PEP, as investors continue to gain better appreciation for the company’s attractive post-synergies earnings growth potential, which we believe will be in the double digits (relative to long-term algorithm of high-single-digits earnings growth for both KO and PEP). Our estimates remain unchanged since earnings (link), and our upgrade is based on our increased confidence that investors will recognize KDP’s consistency and lower the valuation gap against peers."

For an analyst ratings summary and ratings history on Keurig Dr Pepper click here. For more ratings news on Keurig Dr Pepper click here.

Shares of Keurig Dr Pepper closed at $33.89 yesterday.

You May Also Be Interested In

• General Dynamics Corp. (GD) PT Lowered to $320 at RBC Capital
• Masco (MAS) PT Raised to $80 at RBC Capital
• Hilton Worldwide (HLT) PT Raised to $215 at Baird