UPDATE - UBS Upgraded Coca-Cola Enterprises (CCE) to Buy; Concerns Are Not Reality
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Price: $46.72 --0%
Rating Summary:
11 Buy, 10 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 13 | New: 10
Rating Summary:
11 Buy, 10 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 13 | New: 10
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UPDATE - UBS upgraded Coca-Cola Enterprises (NYSE: CCE) from Neutral to Buy. PT maintained at $30.
UBS analyst says, "Four major concerns are weighing on the perceived operational ability of CCE. First, consumer health. Historically, consumer health hasn’t weighed too heavily on CCE and we think they can deliver in today’s environment. Second, worsening COGS. Since the 2Q call, most major input prices have fallen. Third, European instability. CCE’s operations have held up to disruptions thus far and are not correlated to GDP. Fourth, the proposed soda tax in France. We believe CCE can passthrough taxes, if enacted, and volume impact will be minimal."
"We remain confident that the Company can deliver above longer-term trend growth targets in 2011. CCE shares have underperformed their peer group over the last three months, despite delivering better organic growth and guidance. We believe this is irrational and that CCE shares are a compelling opportunity at these levels. Our 12EPSe is $2.37 from $2.39 on increased buyback but FX headwinds."
To see more ratings changes on CCE, Click Here
UBS analyst says, "Four major concerns are weighing on the perceived operational ability of CCE. First, consumer health. Historically, consumer health hasn’t weighed too heavily on CCE and we think they can deliver in today’s environment. Second, worsening COGS. Since the 2Q call, most major input prices have fallen. Third, European instability. CCE’s operations have held up to disruptions thus far and are not correlated to GDP. Fourth, the proposed soda tax in France. We believe CCE can passthrough taxes, if enacted, and volume impact will be minimal."
"We remain confident that the Company can deliver above longer-term trend growth targets in 2011. CCE shares have underperformed their peer group over the last three months, despite delivering better organic growth and guidance. We believe this is irrational and that CCE shares are a compelling opportunity at these levels. Our 12EPSe is $2.37 from $2.39 on increased buyback but FX headwinds."
To see more ratings changes on CCE, Click Here
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