The Ratings Game: Keurig Dr Pepper’s stock sinks after bearish analyst call

Shares of Keurig Dr Pepper Inc. were knocked lower Thursday after Morgan Stanley turned bearish, citing research suggesting the growth in single-serve coffee’s share of the “at home” coffee market is slowing.

Analyst Pamela Kaufman cut her rating to underweight, after being at equal weight as of December 2018. Her $24 stock price target is 10% below current levels.

“Our proprietary AlphaWise survey of nearly 2,000 U.S. consumers, coupled with our detailed review of the U.S. coffee market, informs our forecast of a slowdown in single-serve coffee penetration, with [Keurig] most at risk,” Kaufman wrote in a note to clients. It could also be a positive for some of Keurig’s rivals, she said.

>>> Original Source <<<