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Morgan Stanley Considers Potential Impact of Coca-Cola's Agreement with GMCR

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In a report published Thursday, Morgan Stanley analyst Dara Mohsenian reiterated an Equal-Weight rating on The Coca-Cola Company (NYSE: KO).

In the report, Morgan Stanley noted, “Coke signed a 10-year agreement with GMCR to collaborate on the development and introduction of Coca-Cola products for use in GMCR's Keurig Cold at-home beverage system globally. With the agreement, KO purchased ~$16.7M newly issued GMCR shares for ~$1.25B ($74.98/share), representing a 10% stake in the company. The deal is expected to close in March of 2014. GMCR will be KO's exclusive partner for the production of Coca-Cola branded single-serve, pod-based cold beverages, and the companies stated they will explore future collaboration opportunities in the Keurig system. The agreement does not preclude GMCR from having other beverages on its platform.”

The Coca-Cola Company closed on Wednesday at $37.61.

Latest Ratings for KO

DateFirmActionFromTo
Apr 2017Credit SuisseUpgradesNeutralOutperform
Mar 2017JP MorganInitiates Coverage OnNeutral
Jan 2017Wells FargoDowngradesOutperformMarket Perform

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Posted-In: Dara Mohsenian Morgan StanleyAnalyst Color Reiteration Analyst Ratings

 

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