KEURIG DR PEPPER: Wedbush Sees Opportunity in Snacks and Soda

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KDP Stock Fair Value – KEURIG DR PEPPER ($NASDAQ:KDP) is an American multinational food and beverage company headquartered in Plano, Texas. Wedbush equity analyst Gerald Pascarelli believes there is more opportunity in the soda, snack, and coffee industries than in energy drinks. This is because these industries have low price points and few substitutes, meaning they generally hold up well in recessionary environments. Pascarelli also believes that a normalization in pricing will be offset by a stabilization in commodity prices. He points to aluminum pricing trends specifically as an example. Pascarelli’s positive outlook for KEURIG DR PEPPER is based on the company’s strong position in the snacks, soda, and coffee industries. These industries are relatively resilient to economic downturns, as consumers tend to continue purchasing these items even when their budgets are tight.

Additionally, Pascarelli believes that KEURIG DR PEPPER will benefit from a stabilization in commodity prices. Aluminum prices, in particular, have been volatile in recent years, but Pascarelli expects this trend to reverse in the coming months.

Stock Price

On Tuesday, shares of Keurig Dr Pepper opened at $37.10 and closed at $37.60, up 1.6% from the previous day’s closing price of $37.00. Keurig Dr Pepper has been focused on expanding its snacks and soda business in recent years, and Setyan believes this is a smart move. The snacks and soda industry is growing, and Keurig Dr Pepper is well-positioned to capitalize on this trend.

The company’s brands are strong and have a loyal following among consumers. Setyan expects Keurig Dr Pepper to continue to grow its snacks and soda business, and believes the stock is undervalued at current levels.

VI Analysis – KDP Stock Fair Value Calculator

KEURIG DR PEPPER’s fundamentals reflect its long term potential. The company’s earnings per share, price to earnings ratio, and other key financial indicators all point to a company with a bright future. However, the stock is currently trading at a fair price that is slightly above its intrinsic value. As such, investors may want to wait for a more attractive entry point before buying shares.

Summary

Keurig Dr Pepper is an interesting opportunity in the snacks and soda space. The company has a strong portfolio of brands, including Keurig, Dr Pepper, and Snapple. The company is also benefiting from the growing trend of at-home consumption.

Wedbush analyst Nick Pacelli believes the company is well-positioned to capitalize on these trends. While the company faces some challenges, such as increased competition from private label brands, we believe the long-term opportunity is compelling.