Piper Sandler moved off the sidelines on Keurig Dr Pepper after a strong performance by a new product as well as data suggesting increasing popularity among young consumers. Analyst Michael Lavery upgraded the soda maker to overweight from neutral and hiked his price target by $5 to $40. Lavery now expects shares to add 19.2% from where the stock finished Tuesday. Lavery said strength in the Dr Pepper Blackberry brand has boosted sales growth in its U.S. refreshment beverage division. Overall, he said the company’s carbonated soft drink offerings have seen gains remain robust due in part to the value provided to shoppers. The analyst also cited the company’s performance on Piper Sandler’s survey of Gen Z consumers, which he said can act as a leading indicator for companies. Dr. Pepper topped the list for the preferred soda brands in the spring 2025 survey, winning 29% of mentions. It was also the most popular beverage brand, a category that also includes offerings like energy drinks. “We are upgrading … on strong retail sales growth momentum in its USRB segment and an impressive showing in our Spring 2025 teen survey,” Lavery wrote to clients in a Wednesday note. To be sure, Lavery said lofty prices for green coffee bean futures have remained an overhang for the company. However, he said the rise in price hasn’t hurt guidance as previously thought. With Lavery’s call, he joined the majority on Wall Street with a buy-equivalent rating, per LSEG. Shares ticked around 0.5% higher before the bell following the upgrade. The stock has gained about 4.5% in 2025, putting it on track to snap a three-year losing streak. KDP YTD mountain KDP in 2025 Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today’s dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles, and Dan Ives, with a special edition of Pro Talks with Tom Lee. You’ll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited!
