Morgan Stanley Sees Earnings Risk Related To Venezuela For Coca-Cola FEMSA


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


In a report published Monday, Morgan Stanley analyst Lore Serra reiterated an Underweight rating on Coca-Cola FEMSA (NYSE: KOF).In the report, Morgan Stanley noted, “KOF's shares trade at P/E multiples of 23.2x and 20.0x our 2014/2015 earnings estimates, which is at the upper end of the trading range of comparable companies. We see this valuation as full, particularly relative to earnings risk related to Venezuela. This franchise has driven a high percentage of KOF's overall organic growth in recent years, and accounted for close to 19% of KOF's consolidated EBITDA last year, with strong top-line gains as well as access to the official exchange rate for US$-denominated raw materials.”Coca-Cola FEMSA closed on Friday at $111.46.

27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


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Posted In: Analyst ColorReiterationAnalyst RatingsLore SerraMorgan Stanley