TD Cowen Maintains Hold Rating on Keurig Dr Pepper (KDP) Stock

Keurig Dr Pepper Inc. (NASDAQ:KDP) is one of the Best Low Priced Stocks to Buy According to Analysts. On October 27, TD Cowen analyst Robert Moskow maintained a “Hold” rating on the company’s stock, setting a price objective of $32.00. The analyst’s rating is backed by a combination of factors associated with Keurig Dr Pepper Inc. (NASDAQ:KDP)’s recent strategic moves and financial adjustments.

As per the analyst, the involvement of Apollo and KKR in significant investments via JV and convertible preferred stock brings in some complexity.

While such investments can offer returns and manage financial leverage without the excessive shareholder dilution, the analyst added that the long-term impact is uncertain. Keurig Dr Pepper Inc. (NASDAQ:KDP)’s proactive approach in addressing the investor concerns and governance issues is well-appreciated.  However, the analyst’s “Hold” rating exhibits a balanced view of potential risks and rewards.

Keurig Dr Pepper Inc. (NASDAQ:KDP) announced a binding commitment letter and term sheet for the $4 billion investment in a newly formed K-Cup® pod and other single-serve manufacturing joint venture, which is co-led by Apollo and KKR, with participation from Goldman Sachs Alternatives.

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.

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