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Investing.com - CFRA raised its price target on Coca-Cola Europacific Partners (NASDAQ:CCEP) to $98.00 from $94.00 on Friday, while maintaining a Hold rating on the stock. CCEP currently trades at $88.82, with InvestingPro data showing the company is slightly undervalued compared to its Fair Value estimate.
The research firm based its new target on a 2026 price-to-earnings ratio of 18.9x, which sits above the industry forward average of 16.7x but aligns with CCEP’s five-year historical average of 18.7x. The company currently trades at a P/E ratio of 22.97x, with an EV/EBITDA of 13.3x for the last twelve months.
CFRA noted that CCEP’s growth potential is supported by strategic market expansions and effective cost management, factors that justify the relative valuation assigned to the company. InvestingPro data shows CCEP has achieved 9.04% revenue growth in the last twelve months and maintains a solid 5-year revenue CAGR of 11%.
The firm highlighted the energy category’s strong momentum and ARTD expansion as evidence of portfolio diversification progress, though it expects core Coca-Cola volumes to remain challenged in key European markets. This aligns with one of the InvestingPro Tips that analysts anticipate a sales decline of 0.41% in the current year. CCEP has maintained financial discipline, having raised its dividend for 5 consecutive years with 13.92% dividend growth.
CFRA acknowledged that while non-core category growth potential and disciplined capital allocation through buybacks support a modest valuation uplift, core volume pressures limit upside expectations. Despite these challenges, CCEP maintains a "GOOD" overall financial health score of 2.86 according to InvestingPro, which offers 6 more ProTips and a comprehensive Pro Research Report on this beverage giant.
In other recent news, Coca-Cola Europacific Partners reported its third-quarter earnings for 2025, with revenues totaling 5.41 billion euros, aligning with analyst forecasts. The company also experienced a 0.4% volume growth and a 3.2% increase in revenue, slightly surpassing consensus expectations. Despite facing challenges such as a soft consumer environment in Europe, a 1% negative sales impact from exiting Suntory alcohol distribution in Australia, and typhoon flooding in the Philippines, the company maintained a steady performance. Bernstein raised its price target for Coca-Cola Europacific Partners to $98, noting the company’s volume growth performance. Meanwhile, BofA Securities adjusted its price target to $102, maintaining a Buy rating following the quarterly results. The company has reaffirmed its full-year guidance, which has contributed to investor confidence. These developments highlight Coca-Cola Europacific Partners’ resilience in navigating challenging market conditions.
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