Keurig Dr Pepper (KDP) is seen delivering solid Q2 results that surpass consensus estimates, while the stock's risk-reward profile is expected to be neutral due to the recent price jump of 20%, RBC Capital Markets said in a Tuesday note.

The company is slated to release its Q2 financial results on Thursday.

Data for the quarter points to growth in the low single digits, with the US Refreshment Beverages segment ramping faster sequentially but the Coffee segment growing more slowly from the previous quarter, according to the note. With coffee's recent volatility, the company market share may be under more pressure if competitors move to cut prices first, RBC analysts said.

The analysts noted that the financials of its acquisition KDE Peets will be included in the coming results, which is expected to lead to a wide disparity in organic and constant currency growth. However, these impacts are "appropriately reflected" in the consensus estimates, the analysts said.

KDP is also expected to reiterate full-year 2026 guidance, the note said.

RBC's rating on the company's stock is outperform with a price target of $42.

Price: 30.97, Change: +0.05, Percent Change: +0.18