Keurig Dr Pepper Inc

KDP: XNAS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$83.00	Cdsfh	Ckvcktdtx

Keurig Dr Pepper Earnings: Beverage Resilient, but Soft Demand and Cost Pressure in Coffee Persist

Dan Su

Jul 27, 2023

We plan to maintain our $34 fair value estimate on narrow-moat Keurig Dr Pepper after digesting second-quarter results (organic revenues up 6.1% and adjusted EPS up 7.7%) that matched our forecasts. Our 10-year estimates for mid-single-digit sales growth and low 20s operating margins remain in place. Following a 4% pop on the report, shares trade in a range we'd consider fairly valued.

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