Morgan Stanley initiated coverage of Keurig Dr Pepper (KDP) on August 20, 2026. The bank issued an Overweight rating for the stock. The assigned price target is $38.00 per share. This target represents a potential 22% upside from the previous closing price.
Analyst Dara Mohsenian views the stock as undervalued relative to North American refreshment market growth. The company plans to split into two U.S.-listed entities in early 2027. This separation will create independent refreshment beverage and global coffee businesses. Morgan Stanley expects the move to unlock shareholder value through increased operational focus. The split aims to enhance strategic and financial flexibility for both new companies.