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.
Latest Ratings for KO
Date | Firm | Action | From | To |
---|---|---|---|---|
Jan 2021 | Morgan Stanley | Maintains | Overweight | |
Jan 2021 | JP Morgan | Downgrades | Overweight | Neutral |
Jan 2021 | Deutsche bank | Downgrades | Buy | Hold |
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