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

Morgan Stanley analyst Dara Mohsenian upgraded Keurig Dr Pepper to Overweight from Equal Weight with an unchanged price target of $36. After the stock’s “pronounced” underperformance, the firm views the valuation as “too low” and sees an “opportune entry point,” the analyst tells investors. Visibility on continued U.S. cold drink upside provides flexibility to offset coffee weakness, argues the analyst, who sees “an outsized potential bull case” that could come into sight in the second half if there is a coffee inflection. However, the firm notes that it sees Keurig Dr Pepper’s fundamental inflection as more in the second half and has lowered its EPS view slightly to in-line with consensus for Q2.