Wells Fargo Starts Coca-Cola Enterprises (CCE) at Market Perform; A Fresh Start, But Similar Challenges Remain
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Price: $46.72 --0%
Rating Summary:
10 Buy, 10 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
10 Buy, 10 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Wells Fargo initiates coverage on Coca-Cola Enterprises (NYSE: CCE) with a Market Perform. Valuation range is $28-30.
Wells analyst says, "We believe CCE is now a more focused and financially stable company than in the past, with arguably better-performing markets and multiple mechanisms to support valuation in the near term after its sale of its North American business to KO. Despite being teedup for short- to intermediate-term success, bottling is structurally a low-return business, and CCE is now trading at only a modest discount to the market. Moreover, we think management's favorable long-term financial targets and CCE's current valuation could prove difficult to support if commodity price inflation and/or consumer spending worsens, not low probability events, in our view. Therefore, we recommend investors wait for an entry point that offers a better risk return profile before committing new capital to CCE shares."
For more ratings news on Coca-Cola Enterprises click here and for the rating history of Coca-Cola Enterprises click here.
Shares of Coca-Cola Enterprises closed at $28.85 yesterday.
Wells analyst says, "We believe CCE is now a more focused and financially stable company than in the past, with arguably better-performing markets and multiple mechanisms to support valuation in the near term after its sale of its North American business to KO. Despite being teedup for short- to intermediate-term success, bottling is structurally a low-return business, and CCE is now trading at only a modest discount to the market. Moreover, we think management's favorable long-term financial targets and CCE's current valuation could prove difficult to support if commodity price inflation and/or consumer spending worsens, not low probability events, in our view. Therefore, we recommend investors wait for an entry point that offers a better risk return profile before committing new capital to CCE shares."
For more ratings news on Coca-Cola Enterprises click here and for the rating history of Coca-Cola Enterprises click here.
Shares of Coca-Cola Enterprises closed at $28.85 yesterday.
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