HSBC upgrades ‘steady’ Keurig Dr Pepper to Buy

As previously reported, HSBC upgraded Keurig Dr Pepper (KDP) to Buy from Hold with a price target of $42, up from $36. With Q1 net sales growth of 6% and comparable EPS up 10%, the company “managed to build some cushion for holding on to its full-year guidance,” says the analyst, who sees the company being “in the right place with the right brands.” Keurig Dr Pepper led the industry on coffee pricing and as others catch up, the second half “looks promising,” adds the analyst, who calls the stock “steady in a storm.”