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Investing.com - BofA Securities raised its price target on Coca-Cola (NYSE:KO) to $78.00 from $77.00 on Wednesday, while maintaining a Buy rating following the beverage giant’s second-quarter earnings report. The new target represents a potential 12% upside from current levels, with InvestingPro data showing the stock trading at a P/E ratio of 24.8x.
The company’s Q2 2025 earnings per share exceeded BofA’s estimates and the Visible Alpha Consensus. With an impressive gross profit margin of 61% and a 54-year track record of consecutive dividend increases, Coca-Cola also narrowed its comparable EPS growth range to +3% year-over-year from a previous range of +2-3%.
Despite the earnings beat, BofA noted that Coca-Cola shares underperformed due to a miss versus street expectations on Unit Case Volumes and general market weakness on Wednesday. According to InvestingPro, which offers 8 additional exclusive tips for KO, the stock maintains relatively low price volatility with a beta of 0.45.
BofA highlighted that consumption comparisons will ease into the third quarter, which should provide sequential improvement, though the firm acknowledged that Coca-Cola indicated global consumer uncertainty remains a risk.
Based on the Q2 results, BofA raised its fiscal year 2025 EPS estimate for Coca-Cola to $2.97 from $2.95, with the new price target based on 24x 2026 EPS on higher estimates.
In other recent news, Coca-Cola reported its second-quarter earnings for 2025, surpassing analyst expectations with an earnings per share (EPS) of $0.87, up from $0.84 in the previous year and above the consensus estimate of $0.84. The company achieved this earnings beat primarily due to stronger-than-expected gross margins, which expanded to 62.4%, exceeding consensus by 90 basis points. However, Coca-Cola’s actual revenue came in slightly below expectations at $12.5 billion, compared to the anticipated $12.55 billion. Despite the revenue shortfall, the company experienced a 5% growth in organic revenue, although unit cases declined by 1%.
Deutsche Bank (ETR:DBKGn) raised its price target for Coca-Cola to $81 from $80, maintaining a Buy rating following the company’s second-quarter results. The firm expressed confidence in Coca-Cola’s prospects for the second half of 2025, citing expectations for reaccelerating unit case sales volumes and ongoing productivity improvements. Similarly, CFRA reiterated its Buy rating and maintained an $80 price target on Coca-Cola, reflecting positive sentiment following the earnings beat. These developments highlight a positive outlook from analysts, despite the mixed results in revenue and unit case sales.
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