BofA update shows where active managers are putting money
Investing.com - Citi has raised its price target on Coca-Cola (NYSE:KO) HBC AG (LSE:CCH) stock to GBP40.00 from GBP38.00 while maintaining a Neutral rating on the bottling company.
The price target increase comes as Coca-Cola HBC is expected to deliver against market organic sales growth expectations for the second quarter and first half of 2025, despite facing tough comparisons in Greece and mixed weather in some developing markets.
Citi anticipates strong first-half organic EBIT growth of approximately 16.6%, supported by favorable Easter phasing benefits and increasingly positive weather conditions in many established markets, as well as the absence of last year’s roughly €35 million hit to EBIT from foreign exchange remeasurement.
The research firm expects management to raise its full-year 2025 organic EBIT growth guidance to 9-13% with the upcoming half-year results, noting that ongoing positive earnings momentum has led Citi to increase its fiscal year 2025 EPS forecast by 1%.
While Coca-Cola HBC shares have performed strongly year-to-date and the near-term risk/reward remains skewed to the upside, Citi indicates it sees greater upside potential in Carlsberg (CSE:CARLb) stock at present.
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