Keurig Dr Pepper Coffee Concerns Persist, But Outlook Remains Positive, UBS Says

MT Newswires Live11-05

Keurig Dr Pepper's (KDP) earnings outlook remains positive despite continued challenges in its US coffee business, with growth in US refreshment beverages and JDE Peet's helping offset weaker coffee trends, UBS said in a note.

The brokerage expects US coffee to return to revenue and operating income growth in Q4 as the price-cost relationship improves.

It also expects the US refreshment beverages business to sustain strong growth, particularly in energy drinks.

Keurig Dr Pepper maintained its fiscal 2026 guidance, calling for low double-digit foreign exchange-neutral earnings per share growth, UBS said.

UBS maintained the company's buy rating and raised its price target to $42 from $39.

Price: 36.91, Change: +2.17, Percent Change: +6.25

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