08:15 AM EDT, 04/25/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We increase our 12-month price target by $2 to $34, based on a '25 P/E of 16.6x, a justified discount to larger soft drink peers. We maintain our adjusted EPS estimates of $1.95 for '24 and $2.05 for '25. KDP posts Q1 adjusted EPS of $0.38 vs. $0.34 (+12%), well ahead of the $0.35 consensus. The beat was driven by stronger-than-expected sales and margins, as net sales rose 3.4% to $3.47B ($50M ahead of consensus) and gross margin expanded 390 bps to 55.9% (190 bps ahead of consensus). On a constant currency basis, net sales were up 2.8%, driven by higher price realizations (+3.1%), partially offset by lower volume/mix (-0.3%). KDP maintained prior full year guidance. KDP appointed a new CEO, an announcement we view positively given the company's sluggish recent growth and questions surrounding its strategy going forward. We maintain a Hold on concerns over volume growth as non-alcoholic beverage consumers increasingly push back on recent price increases, seeing better opportunities across the space.