Coca-Cola Stock (KO) Slips on Class-Action Lawsuit

Coca-Cola (KO) stock was down on Wednesday after the beverage company was hit with a class-action lawsuit over two of its soda brands. The lawsuit alleges that Fanta and Sprite contain misleading advertising with claims of being 100% naturally flavored.

According to the lawsuit, there are several synthetic ingredients in Fanta and Sprite that contribute to their flavor profile. That includes citric acid, sodium citrate, and potassium citrate. It argues that this breaks California laws regarding accurate labels.

Coca-Cola hasn’t responded to the class-action lawsuit, which seeks damages, prospective injunctive relief, restitution, as well as disgorgement of all ill-gotten profits. The plaintiff also argues that they wouldn’t have purchased the affected products, or would have paid less for them, had they known about the “false and deceptive misrepresentations.”

KO Stock Movement & Analyst Coverage

KO stock was down 1.67% as of Tuesday afternoon, but is still up 14.56% year-to-date. Investors will also note that Coca-Cola shares have rallied 12.61% over the past year. The stock has performed well in 2025, despite market pressure from President Donald Trump’s trade war. That includes tariffs on metal imports, such as aluminum, and other goods.

The latest analyst coverage of Coca-Cola stock comes from Jefferies’ Kaumil Gajrawala last week. At that time, he reiterated a Buy rating and $83 price target, implying a potential 17.12% upside for KO shares.

Is Coca-Cola Stock a Buy, Sell, or Hold?

Turning to Wall Street, the analysts’ consensus rating for Coca-Cola is Strong Buy, based on 15 Buy and a single Sell rating over the past three months. With that comes an average KO stock price target of $79.33, representing a potential 11.95% upside for the shares.

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