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Barclays Downgrades Keurig Dr Pepper Inc. (KDP) from Overweight to Equal Weight, Reduces PT to $26

By Faheem Tahir | October 01, 2025, 8:10 PM

With significant upside potential, Keurig Dr Pepper Inc. (NASDAQ:KDP) secures a spot on our list of the 12 Best Widow and Orphan Stocks to Buy According to Analysts.

Barclays Downgrades Keurig Dr Pepper Inc. (KDP) from Overweight to Equal Weight, Reduces PT to $26

On September 24, 2025, Barclays downgraded Keurig Dr Pepper Inc. (NASDAQ:KDP) from Overweight to Equal Weight, lowering its price target from $39 to $26, citing “elevated noise and uncertainty” expected to persist for the next 12 months due to ongoing asset reorganization actions.

Despite the downgrade, Keurig Dr Pepper Inc. (NASDAQ:KDP) continues to show solid fundamentals, including a 54.93% gross profit margin and 4.63% revenue growth. Barclays acknowledged that while the restructuring could provide long-term benefits, near-term investor visibility remains clouded by the company’s complex story.

To provide clarity, Keurig Dr Pepper Inc. (NASDAQ:KDP) plans to hold an investor event in October to explain the terms of its acquisition strategy and future roadmap. Additionally, the company announced a $16.96 billion cash acquisition of JDE Peet’s, including a planned spin-off of its coffee operations, and declared a quarterly dividend of $0.23 per share, payable on October 10.

Keurig Dr Pepper Inc. (NASDAQ:KDP) operates through its U.S. Coffee, U.S. Refreshment Beverages, and International divisions, producing and distributing beverages and single-serve brewing systems across domestic and international markets. It is one of the Best Widow and Orphan Stocks.

While we acknowledge the potential of KDP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 15 Stocks That Will Benefit From AI and 12 Best Quantum Computing Stocks to Buy According to Wall Street Analysts.

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