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On Friday, Citi analysts, led by Simon Hales, maintained a Neutral rating on Coca-Cola (NYSE:KO) Hellenic (CCH:LN) (OTC: CCHGY) with a consistent price target of GBP32.00. The firm anticipates a challenging first quarter for the beverage company, citing specific calendar effects and broader market conditions.
Citi’s analysis projects that Coca-Cola Hellenic will face a 4.5% headwind on volumes in many markets during the quarter, attributing 3.1% to two fewer selling days and 1.5% to the later timing of Easter. While these impacts are expected to be temporary, with the Easter volume likely to rebound in the second quarter and an additional selling day to boost the fourth quarter, the firm remains cautious.
The analysts highlighted that despite solid underlying trends in emerging markets, a combination of technical effects and a lackluster consumer environment in established markets, along with challenging comparisons in several developing markets, is expected to result in flat group volumes for Coca-Cola Hellenic in the first quarter of 2025. This forecast stands in contrast to the current consensus, which anticipates a volume increase of 1.9%.
Citi also noted the quality of Coca-Cola Hellenic’s non-Russian businesses but expressed concerns over the soft first quarter and potential risks to future earnings per share (EPS) should the Russia/Ukraine conflict be resolved. The firm suggests that, given the stock’s relatively full valuation, there may be greater upside potential in other companies, such as ABInBev, for the time being.
This cautious stance comes as the market navigates through various geopolitical and economic uncertainties, with analysts closely monitoring the impacts on multinational corporations such as Coca-Cola Hellenic.
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