KDP: Fundamental Acceleration...Cyclical Torque—Tactical on KDP

研报英文原文证据摘录

KDP: Fundamental Acceleration...Cyclical Torque—Tactical on KDP

Equity Research

Company Update — June 11, 2026

Beverages

Keurig Dr Pepper Inc.

Fundamental Acceleration...Cyclical Torque—Tactical on Overweight

KDP Price Target: $37.00

Our Call Ticker KDP

Upside/(Downside) to Target 16.7%

KDP screens as one of the most unique opportunities in Staples today given: 1)

fundamental acceleration of Beverage core, 2) cyclical catalysts with Coffee margins, 3) Price (06/10/2026) $31.70

historically cheap valuation. We'd lean into shares as summer sets up well. 52 Week Range $24.88 - 35.94

Market Cap (MM) $43,229

Time to lean into KDP. The KDP story languished for months following the acquisition Enterprise Value (MM) $55,520

of JDEP (announced Aug 2025, closed April 1, 2026), with apathy setting in and shares Average Daily Value (MM) $349

at record low valuation. We argue it's time to lean back into KDP for 3 key reasons: 1) Dividend Yield 2.5%

Beverage fundamentals are accelerating just as comps turn the easiest in a year (for the

next year); 2) cyclical upswing in Coffee margins feels increasingly tangible, 3) amid limited $ (Dec) Q1 Q2 Q3 Q4 FY

value at quality in Staples...KDP intrigues at P/E lows. EPS

2026E 0.39 A 0.54 E 0.65 E 0.72 E 2.30 E

Beverage Core. KDP's beverage business is accelerating. 1) Dr Pepper - consumption ~ 2027E 0.48 E 0.55 E 0.70 E 0.79 E 2.52 E

+6% L4W is best since December, with Creamy Coconut just two months into launch

Source: Company Data, Wells Fargo Securities estimates, and Factset.

against a base period with no LTO activity - strength can last; 2) Canada Dry - past few NA = Not Available, NC = No Change, NE = No Estimate

months have seen +LDD, best since Feb 2025, driven by Strawberry Fruit Splash, also on