Keurig Dr Pepper Slumps as Deal Risk Spurs Rare Sell Call
Cases of Keurig Dr Pepper Inc. soft drinks are displayed for sale at a grocery store in Louisville, Kentucky.
Photographer: Luke Sharrett/BloombergKeurig Dr Pepper Inc. shares fell 4.3% on Monday to their lowest level since May 2020, after BNP Paribas Exane cut its rating on the stock to the equivalent of sell.
Analysts led by Kevin Grundy downgraded the owner of the Canada Dry and Snapple soft drink brands to underperform from neutral, citing its’s “poorly-received” $18.4 billion deal to acquire Dutch coffee and tea company JDE Peet’s NV. They also see a risk to earnings from elevated coffee prices and a softening backdrop in consumer staples.