Keurig Dr Pepper Stock Slips Premarket — A Wall Street Downgrade Lands Amid Bearish Retail Sentiment

Keurig Dr Pepper Inc.’s (KDP) stock fell moderately in the early premarket session on Wednesday after it snagged a downgrade from Barclays. The negative catalyst could worsen the already negative retail sentiment toward the stock.

In premarket, Keurig Dr Pepper stock fell 0.60%, signaling a reversal from Tuesday’s 2% advance.

Barclays downgraded the shares of Keurig Dr Pepper to ‘Equal Weight’ from ‘Overweight’  and also lowered the price target for the stock to $26 from $39, The Fly reported. The firm attributed the rating action to the near-term complexities.  The updated price target implies nearly 2% downside from the stock’s closing price on Tuesday.

Analysts at the firm said asset reshuffling could be the right move for the beverage giant in the long term. However, they believe the transactions "present elevated noise and uncertainty over the next 12 months.”

Barclays also stated that new information presented at the company’s investor event in October may not serve as a positive catalyst.

The company has attracted a slew of negative opinions from Wall Street firms in recent weeks. BNP Paribas downgraded the stock earlier this week to ‘Underperform’ with a $24 price target. The firm called Keurig Dr Pepper’s agreement to merge with JDE Peet (JDEPF) "one of the worst-received deals by investors,” it could recall in the consumer staples sector. The firm flagged risk to current expectations, deal risk, and a "credibility setback.”

On Stocktwits, retail sentiment toward the stock remained ‘bearish’ (42/100) as of early Wednesday, and the message volume on the stream stayed ‘low.’

Keurig Dr Pepper stock is down about 16% so far this year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Read Next: Micron Stock Rises Premarket: Guidance Shows ‘AI Train Just Keeps Rolling,’ Says Munster After Stellar Q4