In a report released today, Kevin Grundy from Jefferies maintained a Hold rating on Keurig Dr Pepper Inc (NYSE: KDP), with a price target of $25. The company’s shares closed yesterday at $24.79, close to its 52-week high of $25.25.
Grundy wrote:
“Following the Keurig (KGM) and Dr Pepper Snapple (DPS) merger, we maintain our Hold rating w/ a $25 PT. While synergies, US-centric footprint, rational CSD pricing, and Bai growth (supported by our Spring Bevs survey) are all attractive, integration risk, k-cup growth outlook (see our survey), high bar for delivery, and full valuation keep us on the sidelines. At 16x EV/EBITDA, we see better opportunities elsewhere. Hold, $25 PT – we prefer MNST/COT in bevs. Updated thoughts on the KDP merger: We remain on the sidelines following the completion of the KDP merger on 7/10 and special dividend, given: (i) integration risk (w/ MOEs inherently risky); (ii) high bar for delivery w/ aggressive financial/synergy targets; (iii) demand concerns in Keurig pods/brewers; (iv) competitive NA bevs env’t; and (v) full valuation.”
According to TipRanks.com, Grundy is a 4-star analyst with an average return of 6.2% and a 67.8% success rate. Grundy covers the Consumer Goods sector, focusing on stocks such as Coca-Cola European Partners, Edgewell Personal Care, and Monster Beverage Corp.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Keurig Dr Pepper Inc with a $39.86 average price target, representing a 60.8% upside. In a report issued on July 11, Stifel Nicolaus also initiated coverage with a Hold rating on the stock with a $20 price target.
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Keurig Dr Pepper Inc’s market cap is currently $4.47B and has a P/E ratio of 4.26. The company has a Price to Book ratio of 1.80.
Based on the recent corporate insider activity of 120 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of KDP in relation to earlier this year. Earlier this month, James Baldwin, the EVP of KDP bought 63,754 shares for a total of $4,394,937.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
Keurig Dr Pepper, Inc. manufactures and markets non-alcoholic beverages. The company is headquartered in the Burlington, Massachusetts.
