In a report released today, Pablo Zuanic from Susquehanna reiterated a Buy rating on Keurig Dr Pepper Inc (NYSE: KDP), with a price target of $33. The company’s shares closed yesterday at $23.54, close to its 52-week high of $25.25.
Zuanic wrote:
“Factual commentary from management is discussed in the next paragraphs. In our interpretation, and as per our own estimates and calculations, 1) we expect KDP coffee (KGM division) $ sales in 2018 to come in ahead of guidance (with volumes up HSD vs. MSD) and coffee margins to be at the high end of the guidance range of 200-300bp (290bp in 2Q18); 2) on the other hand, while DPS sales are likely to at least meet the high end of implied guidance, margins are likely to come in below, in our opinion, as cost pressures will not be offset by the benefits of pricing until later this year. Changes in the allied brand portfolio (incoming/outgoing) should have a neutral effect on earnings. On the whole, our net read for 2018 is positive. Regarding the 2019-2021 outlook, we continue to think coffee will be the main source of upside (plus potential accretive M&A).”
According to TipRanks.com, Zuanic is a 4-star analyst with an average return of 6.7% and a 50.7% success rate. Zuanic covers the Consumer Goods sector, focusing on stocks such as Coca-Cola European Partners, Constellation Brands Inc, and Anheuser-Busch Inbev Sa.
Keurig Dr Pepper Inc has an analyst consensus of Moderate Buy, with a price target consensus of $25.20.
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Keurig Dr Pepper Inc’s market cap is currently $4.24B and has a P/E ratio of 3.86. The company has a Price to Book ratio of 1.56.
Based on the recent corporate insider activity of 127 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. Most recently, in July 2018, James Baldwin, the CLO 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.
