Keurig Dr Pepper Inc. (KDP) Rated 'Overweight' at Piper Sandler, Price Target Cut

Keurig Dr Pepper Inc. (NASDAQ:KDP) is one of the best FMCG stocks to invest in. On September 17, Piper Sandler reiterated an ‘Overweight’ rating on the stock but lowered the price target to $35 from $40. The price target cut comes amid concerns about the company’s debt level following the JDEP acquisition.

The research firm has raised concerns that the acquisition could push the company’s pro forma leverage to 5.2X by the end of 2026, before falling to 4.3X times by the end of 2027. Amid concerns about leverage, the research firm reduced the company’s earnings per share estimate to between $2.01 and $2.06, down from the initially expected range of $2.17 to $2.14.

Nevertheless, Piper Sandler is bullish about Keurig De Pepper’s momentum in the U.S. retail beverage sector owing to its edge among soda makers. It also expects a $20 million boost in the third quarter from the Ghost brand.

Keurig Dr Pepper Inc. (NASDAQ:KDP) is a beverage company that owns and markets over 125 brands across various categories, including soft drinks, coffee, tea, water, and juice. These brands include popular names such as Dr Pepper, Snapple, Canada Dry, and the Keurig single-serve brewing system.

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Disclosure: None. This article is originally published at Insider Monkey.