JDE Peets New beans have been planted, but harvest is still a few years away

On July 1st, JDE Peet's launched its new “Reignite the Amazing” strategy. The strategy was presented by the newly appointed CEO & CFO and aims to increase the focus on 12 core brands through three big bets. This should allow the group to streamline its operations and create simplicity. Although already communicated previously, the CMD marks an official shift in capital allocation priority from M&A towards shareholder remuneration. Together with the decline in green bean prices from the 1Q25 peak, this has triggered a rally in the share price over recent months. As most of the triggers highlighted in our initiation note have now materialized, we lower our rating from Buy to Hold, but slightly increase our TP from € 24.0 to € 25.0ps.