Acquisition Announcement: Keurig Dr Pepper Inc. is nearing an $18 billion deal to acquire Dutch coffee company JDE Peet’s NV, as reported by the Wall Street Journal.
Company Structure Changes: If finalized, the merger would lead to a separation of beverage and coffee units, reversing the 2018 merger between Dr Pepper and Keurig.
Analyst Concerns: Analysts had previously raised concerns about the 2018 merger, noting that while the beverage segment has performed well, the coffee segment has faced challenges.
Market Implications: The potential acquisition reflects ongoing shifts in the beverage industry and highlights the differing performances of various product segments within the company.
KDP
$28.59+Infinity%1D
Analyst Views on KDP
Wall Street analysts forecast KDP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KDP is 33.60 USD with a low forecast of 24.00 USD and a high forecast of 42.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
Wall Street analysts forecast KDP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KDP is 33.60 USD with a low forecast of 24.00 USD and a high forecast of 42.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Buy
5 Hold
1 Sell
Moderate Buy
Current: 29.230
Low
24.00
Averages
33.60
High
42.00
Current: 29.230
Low
24.00
Averages
33.60
High
42.00
Jefferies
Kaumil Gajrawala
Buy -> Hold
downgrade
$32
2025-12-16
New
Reason
Jefferies
Kaumil Gajrawala
Price Target
$32
2025-12-16
New
downgrade
Buy -> Hold
Reason
Jefferies analyst Kaumil Gajrawala downgraded Keurig Dr Pepper to Hold from Buy with a $32 price target. The company's new BevCo and Global CoffeeCo are capable of delivering top-line growth in FY26-27, but large scare mergers come with integration risk, the analyst tells investors in a research note. The firm further cites a heavy debt load, coffee price volatility, and new financing structure in its downgrade.
Deutsche Bank
Buy
to
Hold
downgrade
$35 -> $32
2025-12-15
New
Reason
Deutsche Bank
Price Target
$35 -> $32
2025-12-15
New
downgrade
Buy
to
Hold
Reason
Deutsche Bank downgraded Keurig Dr Pepper to Hold from Buy with a price target of $32, down from $35, as part of its 2026 outlook for the consumer packaged goods sector. The analyst remains more cautious on names with "complex" acquisitions, which prompts the downgrade of Keurig Dr Pepper. It cites the company's integration demands, potential coffee questions, rising energy competition, and the stock's 0% run over the past month for the downgrade.
Deutsche Bank
Buy
to
Hold
downgrade
$32
2025-12-15
New
Reason
Deutsche Bank
Price Target
$32
2025-12-15
New
downgrade
Buy
to
Hold
Reason
Deutsche Bank downgraded Keurig Dr Pepper to Hold from Buy with a $32 price target.
Piper Sandler
Michael Lavery
Overweight
maintain
$35 -> $38
2025-12-15
New
Reason
Piper Sandler
Michael Lavery
Price Target
$35 -> $38
2025-12-15
New
maintain
Overweight
Reason
Piper Sandler analyst Michael Lavery raised the firm's price target on Keurig Dr Pepper to $38 from $35 and keeps an Overweight rating on the shares. The firm says Keurig's top-line momentum for both U.S. Coffee and USRB is steady. U.S. Coffee's pod pricing continues to build in market and should wrap into early 2026, with elasticities manageable so far. Tariffs on coffee imports have rolled off, but relief for Keurig Dr Pepper is likely six months out as it has to work through inventory already subject to tariffs, Piper adds. International's topline momentum remains strong, which the firm expects to continue in Q4, though it thinks Mexico's new sugar tax will be a modest drag on Keurig Dr Pepper's International volume in the first half of 2026.
About KDP
Keurig Dr Pepper Inc. is a beverage company in North America that manufactures, markets, distributes and sells hot and cold beverages and single serve brewing systems. It has a portfolio of beverage brands, including Keurig, Dr Pepper, Canada Dry, Mott's, A&W, Penafiel, Snapple, 7UP, Green Mountain Coffee Roasters, GHOST, Clamato, Core Hydration and The Original Donut Shop, as well as the Keurig brewing system. Its U.S. Refreshment Beverages segment is a manufacturer and distributor of liquid refreshment beverages (LRBs). This segment manufactures and distributes concentrates, syrup and finished beverages of its brands and third-party brands, to third-party bottlers, distributors, retailers, and end consumers. Its U.S. Coffee segment is a manufacturer and distributor of single serve brewers, specialty coffee (including hot and iced varieties), and ready to drink (RTD) coffee. Its International segment includes sales in Canada, Mexico, the Caribbean and other international markets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
