Stock Price & Analysis

Based on the available data and recent market developments, here's a concise analysis of KDP stock:

Technical Analysis

The stock is showing signs of stabilization around the $34 level, with recent insider buying activity providing support. A major 10% owner (BevCo B.V. JAB) purchased 3,619,600 shares for approximately $120.7 million on January 29, 2025, demonstrating confidence in the company's prospects.

Fundamental Analysis

KDP has underperformed both the broader market and its sector over the past year:

• Stock performance YTD: Marginally down
• S&P 500 YTD: +2.7%
• Food & Beverage ETF (PBJ): +5.5% over past year

Analyst Consensus

The current analyst consensus shows:

• Rating: "Moderate Buy"
• Price Target: $37.44 (16.6% upside potential)
• Based on: 9 Strong Buy, 1 Moderate Buy, 7 Hold ratings

Upcoming Catalyst KDP is scheduled to report earnings on February 25, 2025 (tomorrow). Analysts expect:

• Revenue: $4.06 billion
• EPS: $0.58 per share

Recommendation HOLD. While the recent insider buying and analyst optimism are positive signals, it would be prudent to wait for the upcoming earnings release tomorrow before making any trading decisions. The stock's current technical setup suggests consolidation, and the fundamental metrics indicate the company needs to demonstrate stronger volume growth rather than relying primarily on price increases.

Based on the provided data and recent market developments, here's a comprehensive price prediction analysis for KDP stock in 2025:

Technical Analysis

The technical indicators show:

• Strong RSI readings (RSI-14 at 69.96)
• Bullish MACD with positive divergence (MACD 0.34, Signal 0.06)
• Price trading above all major moving averages (SMA 5,10,20,60)
• Bollinger Band Position at 0.96 indicating potential overbought conditions

Fundamental Drivers

Recent developments affecting KDP's 2025 outlook:

1. Coffee Price Impact:

• Arabica coffee prices up 80% in past 6 months
• Citi's base case: mid-single-digit EPS growth
• Bear case: flat EPS growth if coffee costs rise 90%
• Bull case: high single-digit EPS growth with stronger pricing

2. Institutional Confidence:

• Major insider purchase of 3.62M shares worth $120.7M on Jan 29, 2025
• 406 institutions increased positions vs 320 decreased
• Shows strong institutional confidence

Price Target Scenarios

Based on analyst consensus:

• Mean target: $37.44 (+16.6% upside)
• Street high: $42.00 (+30.8% upside)
• Current consensus: "Moderate Buy" from 17 analysts
• 9 Strong Buy, 1 Moderate Buy, 7 Hold ratings

2025 Price Prediction

Base Case ($36-37):

• Mid-single digit EPS growth
• Successful pricing actions offsetting coffee costs
• Probability: 60%

Bull Case ($40-42):

• High single-digit EPS growth
• Lower coffee cost exposure
• Strong pricing power
• Probability: 25%

Bear Case ($30-32):

• Flat EPS growth
• 90% coffee cost inflation
• Weaker pricing power
• Probability: 15%

Most likely scenario: Base Case targeting $36-37 by end of 2025, supported by:

• Strong institutional buying
• Proven pricing power
• Diversified portfolio beyond coffee
• Solid technical momentum

The S1 support level for KDP Stock is $31.25 ,The R1 resistant level for KDP Stock is $35.17.

As of the end of day on 2025-02-26, the price of KDP Stock was $34.64.

The target price for KDP Stock according to analyst rating is 37.53, with the highest price target at 42.00 and the lowest at 34.00. Analysts have a Moderate Buy rating on KDP Stock overall.

The market cap of KDP is $47.4B.

Based on the comprehensive data analysis, KDP appears fairly valued with some headwinds. The company's P/E ratio has significantly improved from 35.38 in 2022 to 21.52 in 2023, now trading closer to industry averages. Recent coffee price surges (up 80% in six months) pose significant margin pressure for 2025, though the company's diversified beverage portfolio provides some buffer. The company demonstrated strong financial performance with net income growing 51.9% YoY to $2.18 billion in 2023, alongside improved gross margins from 52.16% to 54.54%. Technical indicators show overbought conditions with RSI at 69.96 and trading near the upper Bollinger Band, suggesting potential short-term pullback risk.

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 Dr Pepper, Canada Dry, Green Mountain Coffee Roasters, Snapple, Mott's, The Original Donut Shop, Clamato, and Core Hydration, as well as the Keurig brewing system. Its segments include U.S. Refreshment Beverages, U.S. Coffee, and International. The U.S. Refreshment Beverages segment is a manufacturer, and distributor of liquid refreshment beverages (LRBs). It manufactures and distributes concentrates, syrup and finished beverages of its brands to third-party bottlers, distributors, retailers, and end consumer. The 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. The International segment includes sales in Canada, Mexico, and other international markets.

Based on the available data and market analysis, here is a comprehensive price prediction for KDP stock by 2030:

KDP stock is projected to reach $45-48 by 2030, representing a 32-41% upside from current levels, driven by the company's strong beverage portfolio expansion and strategic acquisitions like Ghost energy drinks.

The coffee segment faces near-term headwinds from rising bean costs, but KDP's diversified revenue streams across CSD (38.7%), K-Cup pods (26.8%), and NCB (22.8%) provide stability for long-term growth.

Recent analyst consensus maintains a "Moderate Buy" rating with a mean price target of $37.44, suggesting the stock is currently undervalued and has room for appreciation over the coming years as the company executes its growth strategy.

KDP has a total of 28100 employees.