UPDATE: Citi Raises PT on Coca-Cola Bottling Co. to $69 (COKE)

Citi is out with its report today on Coca-Cola Bottling Co. (NASDAQ: COKE), raising its PT from $61 to $69.

In a note to clients, Citi writes, "While we are encouraged by the improved on-premise and convenience trends in CSDs, and we are hopeful that positive pricing will boost not only revenue growth but also insulate gross margins, we nonetheless fear that the significant commodity cost inflation expected in 2011 will continue to pressure gross margins. Based on our revised estimates, we are raising our target price to $69 based on a 15x multiple on our new 2012 estimate of $4.59, which valuation level we note is in line with COKE's historical valuation."

Citi maintains Hold on COKE.

Shares of COKE closed Monday at $68.25.