11:55 AM EDT, 07/24/2025 (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 lower our 12-month price target by $2 to $34, based on a 2026 P/E of 15.8x, a justified discount to larger soft drink peers, in our view. We maintain our EPS estimates of $2.05 for 2025 and $2.15 for 2026. Following in-line Q2 earnings and unchanged 2025 guidance, we are maintaining our Hold opinion on KDP shares. Our primary concern is a lack of catalysts for the stock. The U.S. Coffee segment continues to act as a drag, while the U.S. Refreshment Beverages segment has been a standout performer (net sales up 10.5% to $2.7B in Q2). Margin pressures remain a concern (down 110 bps to 55.0% and 40 bps below consensus in Q2) and KDP's share repurchases have fallen dramatically, as it bought back only $9M of stock in the first half of 2025, versus $1.11B in the first six months of 2024. Soft drinks companies continue to face a challenging growth backdrop given various demand-related factors and we prefer other names in the space at current levels.