Keurig Dr Pepper upgraded to Buy from Hold at Deutsche Bank

Deutsche Bank upgraded Keurig Dr Pepper (KDP) to Buy from Hold with a price target of $39, up from $37. The company’s line-of-sight to stable earnings delivery is high, fueled by both sizable productivity initiatives and incremental contributions from partner brands in both its segments, the analyst tells investors in a research note. The firm says abating headwinds associated with the wind-down of Keurig Dr Pepper’s former SCF program should return facilitate a return to 90%-plus conversion, a factor likely to help facilitate a positive re-rating in its trading multiple.