Bernstein analyst Nadine Sarwat maintained a Buy rating on Coca Cola HBC (CCH – Research Report) today and set a price target of p3,625.00.
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Nadine Sarwat has given her Buy rating due to a combination of factors that highlight Coca-Cola HBC’s strong performance and potential for growth. The company concluded 2024 with impressive results, showing an organic net sales growth of 13.8%, which surpassed expectations when considering both volume and price-mix dynamics. Additionally, the organic operating profit growth of 12.2% contributed to an earnings per share (EPS) figure that exceeded forecasts by approximately 1%.
Nadine also sees Coca-Cola HBC’s guidance for 2025 as both solid and realistic, with projections for organic net revenue growth ranging from 6% to 8% and EBIT growth from 7% to 11%. Despite existing geopolitical challenges, particularly in Russia, any positive developments in the region could unlock further value. Coca-Cola HBC is currently valued at an attractive ~11.9x EV/EBIT, making it a promising investment, although there might be more lucrative opportunities elsewhere in the European beverage sector.
According to TipRanks, Sarwat is an analyst with an average return of -11.3% and a 16.67% success rate. Sarwat covers the Consumer Defensive sector, focusing on stocks such as Coca-Cola Europacific Partners, Constellation Brands, and Brown-Forman B.
In another report released today, Barclays also maintained a Buy rating on the stock with a £31.00 price target.