Goldman Sachs Comments on Coca-Cola (KO) Following Management Meetings

Goldman Sachs maintained a Neutral rating on Coca-Cola (NYSE: KO) with a price target of $43. Comments follow meeting with CFO Kathy Waller. Analyst Judy E. Hong noted a more balanced approach to growth.

"We hosted meetings in NYC with KO CFO Kathy Waller. We walk away from the meetings with a view that management is cognizant of key issues and challenges facing KO and that there is an increasing sense of a need to more quickly adapt to evolving market conditions. We are also encouraged by commentary that KO is taking a more balance approach to growth, particularly in NA where one of key focus areas is rational pricing. That said, KO still believes in key tenets behind its stated 2020 vision and embarking on a significant strategic shift is unlikely, in our view," said Hong.

"While volume metrics won’t entirely go away, we do sense that KO is shifting to a more balanced value and ‘transaction’ focus, particularly in developed markets. In NA, rational pricing, price/pack architecture (neighborhood segmentation) and better marketing are key focus areas. In addition, management highlighted that productivity saving is now engrained in KO’s culture while recognizing that there will be opportunities to cut costs," she added.

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 $41.60 yesterday.

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