Coca-Cola (KO) stock gained 4.7% on Tuesday after reporting better-than-expected fourth-quarter 2024 results and issuing an upbeat 2025 outlook. The beverage giant’s impressive performance caught the attention of several Wall Street analysts, prompting four Buy ratings. Analysts believe that Coca-Cola’s strong finish to the year and positive projections for 2025 will continue to attract investors.
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Analysts Show Optimism for Coca-Cola Stock
Among the bullish analysts, Filippo Falorni from Citigroup (C) reiterated a Buy rating on Coca-Cola stock, with an $85 price target (25.74% upside potential). Falorni noted that the company posted robust Q4 results despite higher foreign exchange (FX) headwinds during the quarter. Also, he believes that Coca-Cola’s pricing power and volume growth make its valuation appealing, backed by its strong fundamentals.
Similarly, UBS (UBS) analyst Peter Grom maintained a Buy rating with a price target of $72 (6.5% upside) on KO stock. The analyst highlighted the company’s double-digit organic sales growth and said the market sentiment remains positive heading into 2025. Further, he expects upward revisions to the Street’s estimates for Coca-Cola following fourth quarter results.
Coca-Cola Navigates Currency Challenges with Expansion Efforts
During the Q4 earnings call yesterday, Coca-Cola said it expects a 6%-7% headwind to EPS in 2025 due to currency fluctuations. Also, the effective tax rate is expected to rise to 20.8%, primarily due to the implementation of global minimum tax regulations.
Despite these challenges, Coca-Cola expects to drive growth with strategic investments and market expansion. The company has been investing in infrastructure and distribution networks to reach new consumers in regions with high growth potential. Further, Coca-Cola continues to expand its product portfolio to include a variety of low-sugar and no-sugar options, boosting its market share.
Is KO Stock a Good Buy?
Turning to Wall Street, KO stock has a Strong Buy consensus rating based on 13 Buys and one Hold assigned in the last three months. At $72.43, the average Coca-Cola stock price target implies a 7.14% upside potential. Shares of the company have gained 7.8% over the past three months.
