Keurig Dr Pepper downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley downgraded Keurig Dr Pepper to Equal Weight from Overweight with an unchanged price target of $37. The company’s earnings visibility is now priced into the shares, the analyst tells investors in a research note. The firm says part one of its early-July upgrade has played out with the market now viewing the company’s earnings visibility as solid. Meanwhile, the second part of the call has not fully played out, with an expected sales rebound in coffee not playing out as much as expected, with discounting from pod competitors limiting Keurig share and driving lower company owned-pod pricing, adds Morgan Stanley.