Keurig Dr Pepper (KDP) reported strong Q1 results to start 2026,

with US Refreshment Beverage as the standout segment, RBC Capital Markets said in a Friday note.

"Fundamentals remain solid and the business is progressing in-line with mgmt's plans," the report said.

After closing its acquisition of JDE Peet on April 1, the firm still targets operational readiness for the coffee business separation by the end of 2026, with official separation likely to happen in early 2027, the report said.

"We continue to believe that the stock is undervalued," the note said. RBC kept its $42 price target and outperform rating.

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