Exane ups JDE Peet's to 'outperform' on 'very depressed' valuation

JDE Peets NV

19/03/2025 09:31

** BNP Paribas Exane upgrades Dutch coffee and tea company JDE Peet's JDEP.AS for the first time to "outperform" from "neutral" citing its "very depressed" valuation

** Exane expects improvement of price-to-cost dynamics and notes the stock is trading below 10x estimated 2026 P/E in the context of backwardated coffee futures, where July 2026 futures are trading about 17% below current spot price levels

** The company's planned 1 billion euro ($1.1 billion) share buyback over the next four years is "especially notable" in the context of its relatively modest free float of 32%, the broker adds

** Of 17 analysts that cover JDE Peet's, four rate the stock "strong buy" or "buy", ​10 "hold" and three "strong sell" or "sell"

($1 = 0.9174 euros)

 (Reporting by Dimitri Rhodes)

 ((Dimitri.rhodes@thomsonreuters.com))