Keurig Dr Pepper falls after Truist turns bearish and warns on coffee hangover
George Frey

Keurig Dr Pepper (NASDAQ:KDP) fell in early trading on Monday after Truist Securities downgraded the beverage stock to a Sell rating from Neutral. It was a rare bear call on KDP with 18 out of 20 analysts either having a Buy-equivalent or Hold-equivalent rating on the stock.
Analyst William Chappell warned that Keurig Dr Pepper's (KDP) coffee business will be a drag on sales and profit growth through 2023.
Inflation and an economic recession are also expected to slow down the pace of adding new customers to the beverage giant's brands and place some consensus marks at risk. Chappell recommends being on the sidelines with KDP until at least until the company provides 2023 guidance in early February.
Keurig Dr Pepper (KDP) peeled off 2.86% in premarket action on Monday to $38.42. Shares of KDP have topped the returns of the S&P 500 Index and Consumer Staples benchmarks over the last year.
The Seeking Alpha Quant Rating on Keurig Dr Pepper (KDP) is currently at Hold due to low marks for valuation and growth.