11:32 AM EDT, 08/26/2025 (MT Newswires) -- Keurig Dr Pepper's ( KDP ) planned $23 billion acquisition of JDE Peet's is ultimately likely to value accretive, "but will take some time to realize that value," analysts at RBC Capital Markets said in a note Tuesday.

Investors have reacted negatively to the deal with the stock sliding because the leverage and the complexities of the acquisition have muddied the investment thesis that many had subscribed to, the RBC analysts said.

On the plus side, the proposed acquisition of JDE Peet's and subsequent split into Global Coffee Co. brings more global scale to KDP's US-centric coffee business, diversifies the portfolio, generates cost synergies, softens coffee tariff related dynamics, and brings heightened focus to driving the coffee category, RBC said.

The firm maintained its outperform rating on the stock and a price target of $42.

Shares of Keurig Dr Pepper ( KDP ) were down more than 3.7% in recent trading.

Price: 29.81, Change: -1.29, Percent Change: -4.15