Piper starts Keurig Dr Pepper with Neutral on high coffee prices

Piper Sandler initiated coverage of Keurig Dr Pepper (KDP) with a Neutral rating and $35 price target The firm says beverage categories generally have attractive tailwinds globally, as incomes rise in emerging markets and commercial beverages take share. While Keurig Dr Pepper may drive accelerated growth in the second half of 2025 and 2026 from adding Ghost into its distribution network, the “significant” recent coffee cost increases keeps Piper on the sidelines, especially with “soft” category pricing momentum, the analyst tells investors in a research note.