Analyst Robert Moskow of TD Cowen maintained a Buy rating on Coca-Cola, retaining the price target of $82.00.
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Robert Moskow has given his Buy rating due to a combination of factors that highlight Coca-Cola’s resilience and strategic positioning in a challenging macro environment. Despite a slight decline in volume due to weaker market conditions in June, Coca-Cola’s robust business model has allowed it to maintain strong earnings, with an FX-neutral EPS growth of 8%. The company’s ability to navigate these challenges is further supported by its effective local market execution and market share gains, which suggest a positive outlook for volume growth in the latter half of the year.
Moreover, Coca-Cola’s productivity initiatives have exceeded expectations, contributing significantly to operating margin expansion. The company plans to reinvest these gains into new product innovation and marketing efforts, particularly in key markets like Mexico and India, to drive future growth. These strategic investments, coupled with a maintained price target reflecting a premium justified by Coca-Cola’s strong execution, underpin Moskow’s confidence in the company’s continued performance and his Buy rating.
In another report released yesterday, Deutsche Bank also maintained a Buy rating on the stock with a $81.00 price target.