11:21 AM EDT, 07/22/2025 (MT Newswires) -- Keurig Dr Pepper ( KDP ) is expected to deliver a generally in-line Q2, although sales are likely to come in slightly below estimates given the slightly slower than expected tracked channel trends, RBC Capital Markets said in a note Tuesday.

The firm said it expects the company to reiterate its full-year guidance of mid-single-digit constant currency net sales growth and high-single-digit earnings per share growth.

Consumption data for the quarter indicates overall growth of 2.9%, driven by improving trends in coffee, although US Refreshment Beverages saw slightly slower sequential growth, according to the note. The recent acquisition and full quarter benefit from the Ghost distributor handover are expected to positively impact reported figures, the note added.

International performance faces tougher year-over-year comparisons, lapping +14.7% organic growth lap, as the company's operations in Canada and Mexico may be affected by trade tensions and lower remittances from the US, which could impact consumer spending in Mexico, the firm said.

RBC has an outperform rating on Keurig Dr Pepper ( KDP ) with a price target of $42.

Shares of the company were up more than 1% in recent trading Tuesday.

Price: 33.68, Change: +0.35, Percent Change: +1.07