Wells Fargo Raises Keurig Dr. Pepper Target to $40 After 10.5% Q4 Sales Jump
Wells Fargo boosted its target for Keurig Dr. Pepper to $40 from $35, retaining an Overweight rating after shares climbed 4.2% to multi-month highs post-JDEP acquisition announcement. Fiscal Q4 net sales rose 10.5% to $4.5 billion, while constant-currency full-year net sales grew over 8%.
1. Wells Fargo Raises Price Target
Wells Fargo upgraded its price target from $35 to $40 and reiterated an Overweight rating after noting a 4.2% share rise to the highest level since August’s JDEP acquisition news.
2. Fiscal Q4 and Full-Year Results
The company reported fiscal Q4 net sales of $4.5 billion, marking a 10.5% increase and 9.9% growth on a constant-currency basis, and delivered full-year net sales growth exceeding 8% in constant currency.
3. Segment Performance and Growth Drivers
U.S. refreshment beverages led momentum with favorable net price realization of 6.0% and volume/mix growth of 3.9%, while the GHOST acquisition contributed 3.6 percentage points to volume/mix expansion.