Wells Fargo Lifts PT on Keurig Dr. Pepper Inc. (KDP) to $40 from $35 - Here's Why

Keurig Dr. Pepper Inc. (NASDAQ:KDP) is one of the best cheap stocks under $50 to buy right now. Wells Fargo lifted the price target on Keurig Dr. Pepper Inc. (NASDAQ:KDP) to $40 from $35 on February 25, maintaining an Overweight rating on the shares and noting that shares were up 4.2%, closing at the highest levels since the JDEP acquisition was announced in August. The firm further stated that in a backdrop featuring higher estimates and a Staples tape where value is harder to find, it wonders if Keurig Dr. Pepper Inc. (NASDAQ:KDP) will intrigue a bit more.

The rating update came after Keurig Dr. Pepper Inc. (NASDAQ:KDP) announced its fiscal Q4 and full year 2025 results on February 24, reporting that it delivered 2025 results consistent with guidance, with performance led by solid momentum in U.S. refreshment beverages. Its full-year 2025 highlights showed a constant currency net sales growth of more than 8%, driven primarily by U.S. Refreshment Beverages and International segments. Net sales for fiscal Q4 rose 10.5% to $4.5 billion, and on a constant currency basis, net sales advanced 9.9%, attributed to favorable net price realization of 6.0% and volume/mix growth of 3.9%. Keurig Dr. Pepper Inc. (NASDAQ:KDP) stated that the acquisition of GHOST contributed 3.6 percentage points to volume/mix growth.

Keurig Dr. Pepper Inc. (NASDAQ:KDP) is involved in the manufacture, distribution, marketing, and sale of non-alcoholic beverages. Its operations are divided into the following segments: U.S. Refreshment Beverages, U.S. Coffee, and International. The U.S. Refreshment Beverages segment distributes and manufactures beverage concentrates, syrups, and finished beverages, including the brands Dr. Pepper, Snapple, A&W, 7UP, Hawaiian Punch, Core Hydration, Bai, Yoo-Hoo, Vita Coco, and more.

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: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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