Deutsche Bank Upgrades Coca-Cola (KO) to Buy; $65 Price Target

Deutsche Bank upgrades Coca-Cola (NYSE: KO) to Buy and boosts its price target from $64 to $65.

The firm calls Coke its "best large cap beverage pick". Deutsche sees Coke's international segments as driving volumes higher, slightly offsetting "domestic economic weakness and bottler challenges", creating a "flattish-at-best US outlook." Despite significant multiple compression since the beginning of the year (20x to 18x), Coke has delivered solid operating results.

Deutsche raised its Q2 EPS estimate from $0.96 to $0.97, versus the consensus of $0.96. For FY09, the firm raised its EPS estimate from $3.34 to $3.37, versus the Street consensus of $3.37.

The Coca-Cola Company engages in the manufacture, distribution, and marketing of nonalcoholic beverage concentrates and syrups worldwide.

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