Keurig Dr. Pepper stock dips after Truist downgrades shares

Yahoo Finance Live's Brian Sozzi reports that Keurig Dr. Pepper stock has dipped after Truist downgraded shares.

Video Transcript

BRIAN SOZZI: Of course, the markets were really hit yesterday after those more hawkish than expected comments from Fed chief Jerome Powell. Markets are trying to digest exactly what he said. You're seeing Goldman Sachs come out here today, note for note that the Fed might increase rates by 50 basis points as next meeting. But still, markets are in the green so far today.

Now one stock we are watching right now is Keurig Dr. Pepper. The stock was downgraded to hold from buy by Truist analyst William Chappelle. Chappelle says Keurig Dr. Pepper has, quote, "limited catalysts on the horizon for the coffee segment." The analyst reiterated his $40 price target and warned about a coffee segment slowdown.

I will note these two things real quickly, though. Didn't see this coffee market slowdown in the results a couple of weeks ago from Smucker's. Of course, they are the brand that owns Café Bustelo. We talked to their CEO, Mark Smucker. And he struck an upbeat tone on the state of their coffee business, at least as it pertains to coffee sold in supermarkets right along with the likes of those Keurig K-cup pods.

And also, too, Dutch Bros also coming off a fairly strong quarter as well. Didn't see a coffee slowdown there as well. So in many respects, this might just be a Keurig-related downgrade. But I also real quickly mention here, we're all about ready to go back to offices at some point very soon, and that might stoke demand in those Keurig K-cup pods that, you know, some like, some don't like. Nonetheless, the office space might need them.