UBS Maintains a 'Neutral' on Coca-Cola (KO); Solid Execution and Spending Flex
KO Hot Sheet
Rating Summary:8 Buy, 4 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 19 | Down: 7 | New: 26
UBS maintains a 'Neutral' on Coca-Cola (NYSE: KO) price target raised from $70 to $73.
UBS analyst says, "We are slightly raising our 2012-13 estimates for KO to $4.11 and $4.53, from $4.09 and $4.51. Our new 2012 estimates are based on: 1) 3.3% global volume growth; 2) slightly diminishing FX headwinds (guided L/MSD), 3) slightly better EBIT margins than previously anticipated (partial amounts of new productivity and CCR synergies), 4) flat y/y 2012 GMs, and 5) $30m in interest income."
"Investment Thesis: KO continues to deliver solid EPS and global volume growth amid a volatile macro environment, and we continue to view KO as a best-in-class operator. That said, in light of slowing volumes and the need for higher spending, we see limited upside at current valuation. A 2.7% dividend yield and $2.5-3bn in share repurchases offer downside support."
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 $68.55 yesterday, with a 52 week range of $61.29-$71.77.
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UBS analyst says, "We are slightly raising our 2012-13 estimates for KO to $4.11 and $4.53, from $4.09 and $4.51. Our new 2012 estimates are based on: 1) 3.3% global volume growth; 2) slightly diminishing FX headwinds (guided L/MSD), 3) slightly better EBIT margins than previously anticipated (partial amounts of new productivity and CCR synergies), 4) flat y/y 2012 GMs, and 5) $30m in interest income."
"Investment Thesis: KO continues to deliver solid EPS and global volume growth amid a volatile macro environment, and we continue to view KO as a best-in-class operator. That said, in light of slowing volumes and the need for higher spending, we see limited upside at current valuation. A 2.7% dividend yield and $2.5-3bn in share repurchases offer downside support."
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 $68.55 yesterday, with a 52 week range of $61.29-$71.77.
Discover Wall Street's best ratings calls with the pros - Ratings Insider Elite. Free Trial!
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