Keurig Dr Pepper's stock has been under pressure, declining nearly 5% over the past year due to uncertainties surrounding its strategy to separate its coffee businesses into two distinct entities by early 2027.
Barclays analyst Lauren Lieberman noted that recent developments, including effective asset management and addressing investor concerns regarding financing and separation mechanics, have improved the outlook for the company. The investment bank raised its price target for Keurig Dr Pepper shares from $30 to $36, suggesting a potential upside of 15% from the stock's closing price on Wednesday.
Despite this positive outlook, the market remains divided, with half of the 18 analysts covering the stock recommending a buy or strong buy, while the other half maintain a hold rating. Shares remained flat in premarket trading following the upgrade