UPDATE: Nomura Upgrades Coca-Cola Enterprises Inc

Coca-Cola Enterprises Inc CCE was upgraded from Reduce to Neutral by Nomura and the price target was increased from $39 to $43.

Analyst Ian Shackleton reported that he estimated EPS at $0.88 for the Western European based bottling partner of The Coca-Cola Company KO, versus the consensus of $0.91.

Shackleton noted that he "downgraded to Reduce in April” due to caution on "concentrate costs and lack of market expansion." Now, with The Coca-Cola Company "remaining committed to selling Germany (and under pressure to release capital tied up in bottler assets)" and the perception that Coca-Cola Enterprises "would like to extend its concentrate agreement, we now see a greater probability of such a deal happening."

The report assumed a "50 percent probability for such a deal before 2016, which adds USD 4 to our base DCF valuation of USD 39."

Coca-Cola Enterprises Inc. recently traded at $43.88, down 0.45 percent.