UPDATE - UBS Downgrades Coca-Cola (KO) to Neutral; As the Tide Recedes

UPDATE - UBS lowers Coca-Cola (NYSE: KO) from Buy to Neutral. PT lowered from $73 to $70.

UBS analyst said, "In 2012, Coca-Cola is unlikely to replicate the same success seen in 2011. Currency, which had been in its favour, unnaturally increased operating margins and goes against them in 2012. Volume growth, which drives the multiple, is likely to moderate from ~5% to 3.8%. With limited volume upside and earnings under pressure, at 17x (or a 34% premium to the S&P) KO valuation upside looks limited."

"We have adjusted our 2012 EPS estimate to $4.09 from $4.27, due to currency (with an increased impact on EBIT over revenue). Our 2013 forecast goes to $4.51 from $4.70. This implies earnings growth of 7% and 10% over the next two years."

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