Breaking News
Investing Pro 0
Cyber Monday Extended SALE: Up to 60% OFF InvestingPro+ CLAIM OFFER

Keurig Dr Pepper Dips as Goldman Cuts to Neutral on More Balanced Risk-Reward

Stock Markets Sep 27, 2022 09:47AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Keurig Dr Pepper (KDP) Dips as Goldman Cuts to Neutral on More Balanced Risk-Reward
 
KDP
-0.51%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Senad Karaahmetovic

A Goldman Sachs analyst slashed the rating on Keurig Dr Pepper (NASDAQ:KDP) to Neutral from Buy, sending the company’s shares nearly 1.5% lower today.

The analyst blames the downgrade on a “more balanced risk/reward” on expectations that brewer household penetration and pod attach rates will moderate going forward. Moreover, the analyst sees a slowdown period for the company’s packaged beverage business growth amid a challenging macro environment.

“We see increased risk to KDP’s margins as commodity inflation, especially related to coffee, remains elevated for KDP vs its peers based on our updated commodity tracker,” the analyst said in a client note.

The analyst also slashed the price target to $37 from $39 to reflect modestly lowered FY22 & FY23 estimates, but enough to put Goldman below consensus.

“With limited n.t. positive catalysts and the stock trading at a 6% premium to its beverage peers on a FY23 P/E multiple basis (vs its avg 3-year discount of 2%), we see a better risk/reward elsewhere and therefore move to the sidelines on KDP,” the analyst concluded.

KDP shares are almost flat YTD.

Keurig Dr Pepper Dips as Goldman Cuts to Neutral on More Balanced Risk-Reward
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email