Keurig Dr Pepper (KDP) PT Lowered to $28 at TD Cowen

TD Cowen analyst Robert Moskow lowered the price target on Keurig Dr Pepper (NASDAQ: KDP) to $28.00 (from $36.00) while maintaining a Hold rating.

The analyst commented: "We reiterate our Hold rating and reduce our PT to $28. We maintain 3Q and 2025 EPS estimates and expect KDP will reiterate guidance (+MSD% LC net sales growth; +HSD% LC EPS growth) when they report. Following 10/27 results, KDP will host an Investor Day to discuss the JDEP acquisition and the business split-up. We view this as an important opportunity for mgmt to assuage concerns about the deal.

We lower our PT to $28, which implies a 12.5x target multiple on our forward EPS estimate. This is well below the company's 5-year average NTM P/E multiple (18.5x), which reflects our negative view on increased coffee exposure and elevated leverage as a result of the JDEP acquisition."

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