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Keurig Dr Pepper Falls Midday on Coffee Concerns

Investing.com - Keurig Dr Pepper (NYSE:KDP) slumped in midday trading following an analyst downgrade that highlighted concerns about its main coffee business.

Shares of Keurig fell 3.75%, while the S&P 500 consumer discretionary sector was flat.

Morgan Stanley (NYSE:MS) cut the stock to underweight from equal weight and dropped its price target to $24 from $27.

The brokerage said it predicts revenue below corporate guidance due to lower household penetration of its coffee-making systems and pricing pressure on its coffee pods.

The stock has rebounded recently from a sharp drop in late February after the company missed on revenue expectations and issued weaker guidance, even weathering a report on a medical study that said drinking sugary sodas could contribute to colon cancer.

Also in the beverage sector today, Coca-Cola (NYSE:KO) was flat, PepsiCo (NASDAQ:PEP) lost 0.4% and Starbucks (NASDAQ:SBUX) gained 0.5%.

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