Coke's (KO) BODYARMOR Deal Negative for Keurig Dr Pepper (KDP), Wait-and-See for Monster (MNST) - Deutsche Bank

Deutsche Bank analyst Steve Powers weighed in on Coca-Cola (NYSE: KO) following news the company acquired a minority ownership stake in BODYARMOR.

Powers sees the news as a positive or Coca-Cola, negative for Keurig Dr Pepper Inc. (NYSE: KDP), and a wait-and-see for Monster Beverage (NASDAQ: MNST).

The analyst notes Keurig Dr Pepper will likely lose BODYARMOR distribution over the coming months throughout much of the U.S.

For Monster, the analyst highlight potential tail-risk by way of Coke System attention being partially diverted to supporting the addition/growth of BODYARMOR at the partial expense of MNST's brands, if not managed carefully.

The firm maintained a Buy rating and price target of $52 on KO.

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 $45.83 yesterday.

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