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Keurig Dr Pepper rated Buy on strong U.S. beverage growth and JDE Peet's acquisition benefits

Analyst Insights
12 Sep 2026
Seeking Alpha
View Source
Bullish
Keurig Dr Pepper rated Buy on strong U.S. beverage growth and JDE Peet's acquisition benefits

Keurig Dr Pepper is rated a Buy due to strong volume-led growth in its U.S. Refreshment Beverages segment, driven by market share gains and expanded distribution, especially with products like Dr Pepper Zero Sugar and energy drinks. The recent acquisition of JDE Peet's is expected to add value. While the coffee segment faces challenges from green coffee costs and tariffs, these are likely to ease, supporting margin recovery and better investor sentiment. The stock is attractively valued at 13.99x forward P/E, with visible double-digit EPS growth and a 2.87% dividend yield, offering compelling upside potential.

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