Jefferies Cuts Price Target on Coca Cola (KO) Following 2Q and Guidance Revisions
Jefferies reiterated a Hold rating on Coca-Cola (NYSE: KO), and cut the price target to $45.00 (from $46.00), following the company's 2Q earnings report. KO reported an EPS of $0.60, coming in ahead of the Street estimates of $0.58. However, downward revisions to the topline and EPS guide drove shares lower.
Analyst Kevin Grundy commented, "We are lowering our FY16-18 EPS est. by 2-3% following KO's soft 2Q and downwardly revised org sales guide (+3% from +4-5%) on a precipitous decline in China. We had expected a guide-down given KO's cautionary commentary mid-June, though not to this magnitude. KO's guide now looks achievable, though we see a dearth of catalysts, valuation of 25.5x EV/ULFCF looks full, and visibility remains a concern. Hold, $45 PT."
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Shares of Coca-Cola closed at $43.40 yesterday.