Piper Sandler Sees Strong Momentum in Keurig Dr Pepper (KDP) Stock

Core Insights - Keurig Dr Pepper Inc. (NASDAQ: KDP) is considered one of the most undervalued stocks on NASDAQ, with Piper Sandler maintaining an Overweight rating but lowering the price target from $40 to $35 [1] - Concerns have been raised regarding KDP's post-acquisition leverage, which is expected to reach approximately 5.2x by the end of 2026 and decrease to around 4.3x by the end of 2027 [1] - Despite the price target reduction, Piper Sandler remains optimistic about KDP's strong top-line momentum and its leadership in U.S. retail beverage channels [2] Company Overview - Keurig Dr Pepper Inc. was formed through a merger in 2018 and includes well-known brands such as Dr Pepper, Canada Dry, Snapple, Keurig single-serve coffee pods, and Ghost energy drinks [3] Market Position - Piper Sandler forecasts that KDP's Ghost brand could see an increase of nearly $20 million in its third-quarter 2025 forecast, indicating potential growth in this segment [2]