In a report published Thursday, Wells Fargo analyst Bonnie Herzog commented on a recent investor meeting with The Coca-Cola Co's KO management team and came away "incrementally more positive" in its ability to drive accelerated top-line growth.
The analyst detailed four key takeaways from the meeting:
1. The bulk of productivity and cost savings will be reinvested to drive growth with "some incremental upside potential" to its $3 billion target.
2. Increased media spend could boost top-line growth.
3. Price and pack architecture will drive pricing power.
4. The company's equity stakes in both Monster Beverage Corp MNST and Keurig Green Mountain Inc GMCR provides another avenue for growth.
"Despite the challenging macro environment, we are encouraged by Coca-Cola's ability to drive incremental share gains and net price realization through its increased media spend and best-in-class price/pack architecture," Herzog wrote.
Shares are Outperform rated with a valuation range of $46 to $48 per share.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in