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Coca-Cola: Strong Q4 Performance and Strategic Advantages Drive Buy Recommendation

Coca-Cola: Strong Q4 Performance and Strategic Advantages Drive Buy Recommendation

Morgan Stanley analyst Dara Mohsenian maintained a Buy rating on Coca-Cola (KOResearch Report) yesterday and set a price target of $78.00.

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Dara Mohsenian’s rating is based on Coca-Cola’s impressive performance in a challenging consumer packaged goods environment. The company’s Q4 results stood out with a strong organic sales growth that surpassed consensus expectations and was notably higher than its peers. This performance underscores Coca-Cola’s structural advantage in maintaining long-term pricing power and market share gains, driven by effective marketing and low private label competition.
Coca-Cola’s consistent historical volume growth, the expansion of its Fairlife acquisition, and its focus on high-growth emerging markets contribute positively to its outlook. Despite the stock’s recent price increase, Mohsenian sees it as attractively valued compared to peers, with a lower price-to-earnings ratio despite higher organic sales growth. Consequently, Coca-Cola’s ability to absorb potential financial pressures while maintaining robust topline growth further supports the Buy recommendation.

In another report released today, Wells Fargo also maintained a Buy rating on the stock with a $75.00 price target.

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