BNP Paribas Exane Downgrades Keurig Dr Pepper (KDP) to Sells, Keeps the PT

Keurig Dr Pepper Inc. (NASDAQ:KDP) is one of the Ridiculously Cheap Stocks to Buy According to Analysts. On September 22, Kevin Grundy from BNP Paribas Exane downgraded Keurig Dr Pepper Inc. (NASDAQ:KDP) from Neutral to Sell, with a price target of $24.

The analyst noted the merger agreement with JDE Peet (JDEPF) was one of the worst-received deals in the consumer staples sector. The market reacted negatively to the announcement, and the stock has declined by around 15.40% since the announcement.

Grundy added that both management and the board now have to convince shareholders to ease their skepticism. The analyst calls the shareholder base as being in “unforgiving mood.” The analyst highlighted several risks, including the possibility that the company’s current expectations may not be met. There are also risks around whether the merger’s promised synergies will actually be achieved.

Grundy mentioned that this deal could cause a significant setback in the company’s credibility among investors. This makes the outlook more cautious, leading to the downgrade.

Keurig Dr Pepper Inc. (NASDAQ:KDP) is a North American beverage company that makes, sells, and distributes hot and cold drinks along with single-serve brewing systems.

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Disclosure: None. This article is originally published at Insider Monkey.