Overview
- On September 17, Piper Sandler reaffirmed an Overweight rating on KDP but lowered its price target to $35 from $40.
- Piper Sandler now forecasts pro forma leverage of about 5.2x by the end of 2026, easing to roughly 4.3x by the end of 2027.
- The firm reduced its earnings-per-share outlook to $2.01–$2.06, down from a prior range of $2.17–$2.14.
- KDP has agreed to acquire JDE Peet’s for approximately €15.7 billion, targeting a first-half 2026 close and a subsequent split into Beverage Co. and Global Coffee Co.
- The brokerage cited ongoing beverage momentum, including an expected $20 million third-quarter contribution from the Ghost brand, following a Q2 report that showed $4.16 billion in revenue and 6.1% net sales growth.