JDE Peet's is exposed to growth in coffee, but near-term risks cloud the picture, MS says
** Morgan Stanley initiates coverage of JDE Peet's JDEP.AS with "equal-weight", as it expects the Dutch coffee company to benefit from solid exposure to a growing category, but flags near-term risks
** "JDE Peet's offers pure-play exposure to the structural growth in coffee and is well positioned to gain share," the broker says
** MS sees 10% EPS CAGR over 2024-2027, driven by Europe, its core market, and expanding US and emergent markets
** The broker sees -11% downside to the group's 2025 EPS consensus, as green coffee prices hikes are likely to generate important retail price inflation - "this keeps us on the sidelines," MS says
** "We think the market may wait for new management to be in place before re-rating the stock," MS adds
** Among 13 analysts covering the stock, three rate it "buy"/"strong buy", nine "hold", and one "sell"
Reporting by Alban Kacher
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