Coca-Cola (KO) PT Raised to $71 at Guggenheim; 'Most Immune to High Inflation'
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Guggenheim analyst Laurent Grandet raised the price target on Coca-Cola (NYSE: KO) to $71.00 (from $68.00) while maintaining a Buy rating following earnings, saying it is the most immune to high inflation in their food/bev coverage.
The analyst commented, "Key Message: The Coca-Cola Company reported very strong 1Q results that beat our estimates and consensus, with organic revenue growth of 18% and EPS of $0.64 (GS $0.59, consensus $0.58) fueled by strong volume across all segments ex Asia Pacific, and 300bps of concentrate shipments ahead of unit case volume. In addition, management confirmed its long-term guidance with organic revenue growth of 7-8%, and 5-6% EPS, despite announcing 1-2% impact on net revenue and $0.04 impact on EPS from the discontinued Russia operations. We remain BUY as we think KO is the best placed company to navigate in the context of high inflation thanks to its brands’ pricing power, and the benefit from the incidence model protecting its gross margin. We are adjusting our EPS estimates in FY22/ FY23/ FY24 to $2.50/ $2.73/ $2.99 (prev. $2.48 / $2.72 / $2.97) and are raising our price target to $71 (prev $68), reflecting the company’s superior pricing power and margins structure leverage in the context of high inflation."
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View, Analyst PT Change
Related EntitiesEarnings, Guggenheim, Laurent Grandet
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