Barclays Raises Keurig Dr Pepper Target to $36, Highlights $35–$37 Valuation Range
BCS•Barclays upgraded Keurig Dr Pepper to Overweight and raised its price target to $36 from $30, citing improved leverage, lower uncertainty and clear visibility on its planned split. Its sum-of-the-parts valuation implies $35–$37 per share versus levels near $31, projecting adjusted EPS of $2.30 in 2026 and $2.52 in 2027.
1. Barclays Upgrade and Rationale
Barclays upgraded Keurig Dr Pepper to Overweight and raised its price target to $36 from $30, noting that improved leverage, reduced uncertainty and clearer visibility on the planned split have de-risked the transaction.
2. Sum-of-the-Parts Valuation
A sum-of-the-parts valuation implies an EV/EBITDA-based equity value of $35 per share and a P/E-based value of $37 per share versus recent trading levels near $31, suggesting the stock remains undervalued.
3. Forecasts and Synergies
Barclays maintained adjusted EPS forecasts of $2.30 for 2026 and $2.52 for 2027, while highlighting a three-year $400 million synergy program, revenue synergies and digital marketing initiatives from the JDE Peet’s integration.
