JPMorgan Upgrades This Beverage Giant Citing Sales Momentum

by Shivani Kumaresan, Benzinga Staff Writer

December 13, 2021 7:45 AM | 1 min read | Make a Comment

JPMorgan analyst Andrea Teixeira upgraded Coca-Cola Co KO to Overweight from Neutral with a price target of $63, up from $59, implying an 11.96% upside.
The analyst believes Coca-Cola's sales momentum will build into 2022, "fueled by reopening and pricing."
Teixeira said the company's profitability is relatively less impacted by cost pressures given its asset-light model and its "strong" brand equity allows for low price elasticity.
The analyst added that its valuation is compelling versus historical and peers, even considering the risk of a negative outcome from the tax dispute with the Internal Revenue Service.
Price Action: KO shares are trading higher by 1.12% at $56.91 in premarket on the last check Monday.