Keurig Dr Pepper (NASDAQ:KDP) Upgraded to Buy at HSBC

Keurig Dr Pepper (NASDAQ:KDP) was upgraded by HSBC from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Thursday, MarketBeat reports. The firm currently has a $40.00 target price on the stock. HSBC’s price target points to a potential upside of 35.32% from the company’s previous close.

A number of other analysts also recently issued reports on KDP. Wells Fargo & Company set a $37.00 price target on shares of Keurig Dr Pepper in a report on Wednesday, July 1st. Zacks Research downgraded shares of Keurig Dr Pepper from a “strong-buy” rating to a “hold” rating in a research report on Monday, May 18th. Weiss Ratings restated a “hold (c)” rating on shares of Keurig Dr Pepper in a research report on Friday, August 7th. BNP Paribas Exane raised Keurig Dr Pepper from an “underperform” rating to a “neutral” rating and set a $28.00 price target for the company in a report on Wednesday, April 22nd. Finally, Royal Bank Of Canada reiterated an “outperform” rating and set a $42.00 price target on shares of Keurig Dr Pepper in a research report on Tuesday, August 4th. Ten investment analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company. Based on data from MarketBeat, Keurig Dr Pepper has a consensus rating of “Moderate Buy” and a consensus price target of $34.75.

Keurig Dr Pepper Stock Up 1.3%

Shares of KDP opened at $29.56 on Thursday. The company has a market capitalization of $40.22 billion, a price-to-earnings ratio of 29.86, a PEG ratio of 1.30 and a beta of 0.40. Keurig Dr Pepper has a 52 week low of $24.88 and a 52 week high of $35.94. The stock’s 50-day moving average price is $31.13 and its 200-day moving average price is $29.18. The company has a quick ratio of 0.28, a current ratio of 0.48 and a debt-to-equity ratio of 0.74.

Keurig Dr Pepper (NASDAQ:KDP) last announced its quarterly earnings results on Thursday, August 6th. The company reported $0.57 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.54 by $0.03. The company had revenue of $7.31 billion during the quarter, compared to the consensus estimate of $7.23 billion. Keurig Dr Pepper had a return on equity of 10.80% and a net margin of 7.10%.Keurig Dr Pepper’s revenue for the quarter was up 75.6% on a year-over-year basis. During the same period in the previous year, the company posted $0.49 earnings per share. On average, sell-side analysts predict that Keurig Dr Pepper will post 2.3 EPS for the current year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in KDP. BlackRock Inc. purchased a new stake in Keurig Dr Pepper during the 2nd quarter worth approximately $4,697,645,000. T. Rowe Price Investment Management Inc. acquired a new stake in shares of Keurig Dr Pepper during the 4th quarter worth about $727,667,000. Barrow Hanley Mewhinney & Strauss LLC purchased a new position in shares of Keurig Dr Pepper in the 2nd quarter valued at $767,105,000. Norges Bank purchased a new stake in shares of Keurig Dr Pepper in the 4th quarter valued at about $568,361,000. Finally, Capital International Investors boosted its holdings in shares of Keurig Dr Pepper by 1,987.4% in the fourth quarter. Capital International Investors now owns 16,858,031 shares of the company’s stock valued at $472,193,000 after acquiring an additional 16,050,437 shares during the period. 93.99% of the stock is currently owned by institutional investors and hedge funds.

Keurig Dr Pepper Company Profile

Keurig Dr Pepper (NASDAQ: KDP) is a North American beverage company formed in July 2018 through the combination of Keurig Green Mountain and Dr Pepper Snapple Group. The company designs, manufactures, markets and distributes a wide range of hot and cold beverages and related equipment, combining Keurig’s single‑serve coffee systems with a large portfolio of carbonated and noncarbonated drink brands. It operates a network of manufacturing, packaging and distribution facilities to supply retail, foodservice and e-commerce channels across its served markets.

The company’s product mix includes single‑serve coffee brewers and coffee pods under the Keurig brand as well as a broad assortment of branded beverages.