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Coca-Cola (KO) Called Solid Self-Help Story at Nomura, Says FX Now Fully Discounted

April 14, 2015 7:09 AM EDT
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Price: $61.18 +0.25%

Rating Summary:
    20 Buy, 13 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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Nomura Securities analyst Ian Shackleton reiterated a Buy rating and $53 price target on Coca-Cola (NYSE: KO) saying the FX movements are now fully discounted and an LBO appears off the agenda.

Shackleton commented, "Although we would acknowledge that the Heinz/Kraft merger appears to rule out an LBO of KO in the short term, we still see enormous value creation possibilities from such a move in the medium term. We believe that the self-help moves started by the company in 2014 (USD 3bn cost cutting target, commitment to realising bottling assets) can be enhanced in 2015. We retain our valuation of the potential drivers to create value. Our target price of USD 53 is based on our core DCF value of USD 42 per share, plus a further USD 11 based on probability weighting on several strategies to create value."

The analyst said 1Q is unlikely to be a significant catalyst, but FX downgrades now likely discounted. Revenue growth focus continues.

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 $40.70 yesterday.



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