Coca-Cola Has 'Accelerated Growth Potential,' Wells Fargo Says

In a report published Thursday, Wells Fargo analyst Bonnie Herzog commented on a recent investor meeting with The Coca-Cola Co's (NYSE: KO) management team and came away "incrementally more positive" in its ability to drive accelerated top-line growth.

The analyst detailed four key takeaways from the meeting:

1. The bulk of productivity and cost savings will be reinvested to drive growth with "some incremental upside potential" to its $3 billion target.

2. Increased media spend could boost top-line growth.

3. Price and pack architecture will drive pricing power.

4. The company's equity stakes in both Monster Beverage Corp (NASDAQ: MNST) and Keurig Green Mountain Inc (NASDAQ: GMCR) provides another avenue for growth.

"Despite the challenging macro environment, we are encouraged by Coca-Cola's ability to drive incremental share gains and net price realization through its increased media spend and best-in-class price/pack architecture," Herzog wrote.

Shares are Outperform rated with a valuation range of $46 to $48 per share.