UPDATE: Credit Suisse Initiates Coca-Cola at Outperform on Positive Outlook

In a report published Wednesday, Credit Suisse analyst Michael Steib initiated coverage on Coca-Cola KO with an Outperform rating and $48.00 price target.

In the report, Credit Suisse noted, “Following a 12-month period of underperformance versus global large-cap staples, KO shares have, we believe, the potential to generate returns in excess of the peer group over the next two to three years. We see upside to 2013/14 EPS estimates based on optionality in key markets in Asia and the U.S., and we also expect margins and ROIC to improve. We initiate with an Outperform rating and see 19% upside to our $48 target price over the coming 12-18 months.”

Coca-Cola closed on Tuesday at $40.93.