JPMorgan Holds Overweight on Keurig Dr Pepper Despite Tariff Clouds

Keurig Dr Pepper Inc. (NASDAQ:KDP) is one of the best trade‑war resistant stocks to buy now. On July 17, 2025, JPMorgan’s Andrea Teixeira maintained an Overweight rating and nudged the price target down slightly from $39 to $38, reflecting confidence in KDP’s resilience amid volatility in coffee input costs and brewing competition.

That comes on the heels of strong Q2 2025 earnings reported July 24, where Keurig Dr Pepper posted revenue of $4.16 billion (+6.1%), slightly above expectations, and adjusted EPS of $0.49, in line with forecasts. U.S. Refreshment Beverages volume grew 5%, and sales rose 10.5%, driven by strong demand for brands like Dr Pepper, Snapple, and its majority-owned Ghost energy drinks. Ghost alone accounted for ~4 points of volume growth.

Meanwhile, management cautioned about looming 50% tariffs on Brazilian coffee beans starting August 1, 2025, as well as inflation from poor crop weather, which could pressure margins in its coffee segment through year-end, even as prices have already been raised earlier this year.

Keurig Dr Pepper, formed in 2018 via merger, encompasses iconic beverages like Dr Pepper, Canada Dry, Snapple, Keurig single‑serve coffee pods, and the fast‑growing Ghost energy brand.

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Disclosure: None.