11:35 AM EDT, 04/23/2026 (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 target by $4 to $30, based on a 2027 P/E of 12.5x, a justified discount to larger soft drink peers. Following KDP's Q1 release, we are maintaining our adjusted EPS estimates of $2.25 for '26 and $2.40 for '27. KDP posted Q1 adjusted EPS of $0.39 vs. $0.42 (-7%), ahead of the $0.37 consensus. Net sales rose 9.4% Y/Y to $3.98B ($150M ahead of consensus), but gross margin contracted 180 basis points to 52.8% (20 bps above consensus). KDP's Q1 earnings release was solid, in our view, with top- and bottom-line results exceeding consensus. With the JDE Peet's acquisition now complete and plans for separation into two pure-play companies under way, the focus shifts to the completion of the split and the positioning of both entities for long-term success. However, we think the stock's valuation is likely to lend support to the shares at current levels. After the split, we see KDP's focus shifting to the realization of cost synergies and balance sheet deleveraging.