KDP Soars on Sales Outlook, Avidity Bought by Novartis

Keurig Dr Pepper (KDP) delivered a powerful one-two punch to investor concerns, sending its shares soaring ahead of the New York open. The beverage giant significantly upgraded its fiscal 2025 outlook, now projecting constant currency net sales growth in the high-single-digit range, a substantial improvement from its previous mid-single-digit growth forecast. This upward revision signals management’s confidence in the company’s growth trajectory and operational momentum.

Simultaneously, KDP addressed potential financing worries around its JDE Peet’s NV acquisition by securing a massive $7 billion investment from private equity powerhouses Apollo and KKR. This strategic move effectively alleviates investor anxiety about the company taking on excessive debt to fund the acquisition. The dual announcement demonstrates KDP’s balanced approach to growth—maintaining aggressive sales targets while ensuring financial stability through smart capital allocation.

Children’s apparel specialist Carter’s (CRI) found itself on the opposite end of the market spectrum, with shares falling ahead of the open following disappointing third-quarter results. The company reported net sales that missed the average analyst estimate, reflecting the challenging retail environment and shifting consumer spending patterns that have particularly impacted children’s clothing retailers.

In response to these headwinds, Carter’s announced a comprehensive restructuring plan that includes reducing office-based roles by approximately 15% by the end of 2025. The company also revealed it would be accelerating its store closure program, boosting the number of locations it plans to shutter. These measures represent a significant operational reset as Carter’s seeks to rightsize its business in the face of persistent market challenges and evolving consumer behavior.

In the healthcare sector, Avidity Biosciences (RNA) experienced a dramatic premarket rally after Novartis (NOVN) agreed to acquire the biotechnology company in a landmark deal valued at $12 billion. This acquisition represents one of the most significant pharmaceutical transactions of the year and underscores the continued premium that large drugmakers are placing on innovative biotech platforms and technologies.

The deal highlights Novartis’s strategic focus on strengthening its pipeline through targeted acquisitions of promising biotech firms. For Avidity Biosciences shareholders, the $12 billion valuation represents a substantial premium and validates the company’s technology platform and development programs. The transaction also signals robust M&A activity in the healthcare sector, particularly for companies with novel therapeutic approaches and strong intellectual property portfolios.

The morning’s trading activity reveals several key market trends. In the consumer goods sector, companies like KDP that can demonstrate clear growth pathways and prudent financial management are being rewarded, while traditional retailers like Carter’s continue to face skepticism amid structural industry challenges. The contrasting performances underscore the market’s selective appetite for consumer-facing stocks.

Meanwhile, the Avidity-Novartis deal reinforces the strong investor interest in biotechnology companies with promising platforms, particularly those attracting attention from pharmaceutical giants seeking to bolster their pipelines. The $12 billion transaction size indicates that premium valuations remain available for biotech firms with compelling science and development programs, suggesting continued robust M&A activity in the healthcare space through year-end.