The New CCE Is Finally Here!

Citigroup has published a research report for Coca-Cola Enterprises CCE following the close of transactions with The Coca-Cola Company KO. In the report, Citigroup writes "while New CCE is set to have faster growth than Old CCE given the lower per cap consumption in Europe, coupled with the benefits to come of expanded distribution, the relatively mature and price sensitive market will likely prevent New CCE from growing its top line much faster than its stated 4%-6% target. With these comps and this growth outlook in mind, we believe that New CCE should trade at a 10% premium to the S&P's ~13x multiple (based on CIRA's 2011 estimate). Given our 2011 pro forma EPS estimate, we assign a $25 price target for New CCE's shares." Citigroup maintains its Hold rating and has lowered the price target from $30 to $25. Coca-Cola Enterprises closed yesterday at $22.01