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


27% profit every 20 days?

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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.

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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.


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.


Posted In: Analyst ColorNewsPrice TargetReiterationAnalyst RatingsCoca-Cola Erfrischungsgetränke GmbHCoca-Cola Iberian Partners S.A.U.