Goldman Sachs Downgrades Coca-Cola (KO) to Sell, Says 2017 "Not The Breakout Year"

Goldman Sachs downgraded Coca-Cola (NYSE: KO) from Neutral to Sell with a price target of $39.00 (from $41.00).

Analyst Judy Hong comments "Following in 2016’s footsteps, we do not envision 2017 as a break-out year for KO with the dual impact of recent structural changes and the FX headwind that we anticipate constraining EPS growth. KO’s sales growth is also likely to again be sub-par in 2017, as we see its organic sales growth continuing to lag the global non-alcoholic beverage category given a portfolio mix that still skews to slower-growth categories. Our 12-month price target of $39 (from $41) assumes 19X P/E (from 20X), reflecting our outlook for continued slower earnings growth and modest multiple compression in the broader Staples peer group while our 2017 EPS estimate is 2.6% below consensus."

For an analyst ratings summary and ratings history on Coca-Cola click here. For more ratings news on Coca-Cola click here.

Shares of Coca-Cola closed at $41.74 Friday.

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