Keurig Dr Pepper price target raised to $37 from $36 at Deutsche Bank

Deutsche Bank analyst Steve Powers raised the firm’s price target on Keurig Dr Pepper to $37 from $36 and keeps a Hold rating on the shares. Keurig Dr Pepper has become a popular name among investors, but much of the current debate focuses on near-term dynamics, with bulls pointing to likely prospects of sequential acceleration through second half of 2024 and bears focusing on the potential for rising friction caused by higher green coffee prices, the analyst tells investors in a research note. The firm’s view is that there are increasing signs the company’s 30-year old K-Cup technology has reached a level of diminishing returns on incremental innovation. The company’s K-Round technology may unlock a new window of growth, “but we wonder whether its success may be necessary for any meaningful growth,” contends Deutsche Bank.