Keurig Dr Pepper Inc. (NASDAQ: KDP) continues to emerge as one of the leading FMCG stocks in the market today. On September 17, Piper Sandler maintained an ‘Overweight’ rating for the stock but adjusted its price target downwards to $35 from $40, citing growing concerns regarding the company’s debt levels after the recent JDEP acquisition.
The research firm has expressed concerns that the acquisition could increase the company’s pro forma leverage to 5.2X by the end of 2026, before it potentially decreases to 4.3X by the close of 2027. In line with these leverage concerns, Piper Sandler has revised the company’s earnings per share (EPS) forecast to a range between $2.01 and $2.06, a decrease from the previous estimate of $2.14 to $2.17.
Despite these concerns, Piper Sandler remains optimistic about Keurig Dr Pepper’s performance in the competitive U.S. retail beverage market, highlighting the company’s advantages among soda producers. The firm also anticipates a significant $20 million increase in revenue from the Ghost brand during the third quarter.
Keurig Dr Pepper Inc. (NASDAQ: KDP) is a multifaceted beverage company that manages over 125 brands in various categories, including soft drinks, coffee, tea, water, and juice. The company boasts a impressive portfolio with notable brands such as Dr Pepper, Snapple, Canada Dry, as well as the popular Keurig single-serve brewing system.
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Disclosure: None. This article is originally published at Insider Monkey.
