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Coca-Cola European Partners Topline Will Be Difficult, Says Barclays

Coca-Cola European Partners Topline Will Be Difficult, Says Barclays
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Barclays says top-line growth will be "difficult" for Coca-Cola European Partners (Coca-Cola Enterprises Inc (NYSE: CCE) due to health and wellness headwinds and a soft consumer environment.

Coca-Cola European Partners have started trading under the ticker CCE following the completion of a three-way merger between Coca-Cola Enterprises, Inc., Coca-Cola Iberian Partners S.A.U. and Coca-Cola Erfrischungsgetränke GmbH.

Related Link: Following 3-Way Merger, Goldman Initiates Coca-Cola European Partners At Buy

However, the brokerage is optimistic for synergistic opportunities, which should drive profit growth.

"We are modeling a +1.9% top-line CAGR and average EBITDA growth of +7% over the next four years," analyst William Marshall wrote in a note.

Marshall prefers to remain sidelines with his Equal Weight rating as the management deleverages balance sheet and completes integration. The analyst focuses more on annual forecasts due to better visibility from the 2015 pro-forma filings.

The analyst got to a new $40 price target on fully-synergized 2019 estimated EBITDA of EUR2.39 billion and implies a 15.9x P/E multiple on 2017 EPS estimate of $2.52 (converted from EUR2.26).

"[W]e could envision getting more constructive once the synergy capture accelerates and opportunities to add new territories arise," Marshall added.

Latest Ratings for CCE

Oct 2016Kepler CheuvreuxInitiates Coverage OnBuy
Oct 2016Goldman SachsDowngradesBuyNeutral
Sep 2016Credit SuisseInitiates Coverage onNeutral

View More Analyst Ratings for CCE
View the Latest Analyst Ratings

Posted-In: Coca-Cola Erfrischungsgetränke GmbH Coca-Cola Iberian Partners S.A.U.Analyst Color News Price Target Reiteration Analyst Ratings Best of Benzinga


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