morgan stanley says keurig dr pepper is ready to regain its pop after losing its caffeine high the firm said in a thursday note that pronounced stock underperformance has created a buying opportunity for investors analyst dara mohsenian upgraded shares to overweight from equal weight its price target of 36 implies shares rallying 134 from where they closed on wednesday the stock gained almost 19 thursday during premarket trading said more simply we dont pretend to have complete visibility in coffee but with some of the weakness tied more to factors that dont drive longterm value and a clear path of continued upside in us refreshment beverages kdps valuation looks compelling here after outsized stock underperformance mohsenian said he added that some of the weakness in the coffee segment is simply a dropoff from postcovid benefits strength in the us refreshment beverages segment will help offset the potential downsides from the coffee business said mohensenian we believe kdp us refreshment upside is likely to continue going forward with both a robust and visible industry pricing backdrop as well as strong and consistent kdp market share gains said the analyst beyond a strong industry pricing backdrop we also see kdps share position as consistently solid kdp has now gained yearoveryear us tracked channel beverage share in 14 out of the last 18 quarters he continued keurig dr pepper shares have lost 11 in 2023 we see kdps stock price as discounting too much risk said mohsenian —cnbcs michael bloom contributed to this report