Bank Of America: Coca-Cola Enterprises Upgraded Due To Low Expectations For 2015

Bryan Spillane of Bank of America upgraded shares of

to Buy from Neutral with a $52 price target due to low expectations for 2015 and a valuation discount. “Coca-Cola Enterprises was one of the worst performing stocks in our food and beverage coverage universe in 2014 due to weaker than expected sales and profit growth,” Spillane wrote. The analyst adds that downside risk is now limited as valuation is low relative to its peers and negative earnings expectations along with foreign exchange tailwinds for 2015 are priced in. Spillane sees shares moving higher as the company will likely be a beneficiary of

turnaround strategy that includes changing its franchise map in Europe with a focus on diversifying geographic risk by shifting towards a model with more small operators.