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Wednesday, Bernstein analysts adjusted their outlook on Coca-Cola (NYSE:KO) Europacific Partners (CCEP:NA) (NASDAQ: CCEP), reducing the price target from EUR 6,666.00 to EUR 6,510.00 while maintaining a Market Perform rating. The revision comes as the stock trades near its 52-week high of $86.98, having delivered an impressive 32% return over the past year. The revision reflects minor updates in earnings forecasts and foreign exchange fluctuations. InvestingPro analysis reveals 8 additional key insights about CCEP’s current market position and future prospects.
The company, with significant market presence in six key regions and a substantial market cap of $39.7 billion, has been recognized for its strong fundamentals and expected mid-single-digit (MSD%) revenue growth, driven by its operations in faster-growing Asia-Pacific markets. This follows an impressive 11.7% revenue growth in the last twelve months. This growth is anticipated to be somewhat balanced by slower expansion in European markets. The territories of Iberia, Great Britain, Germany, Australia, the Philippines, and France together generate over 80% of CCEP’s forecasted net sales for 2024. According to InvestingPro’s comprehensive analysis, the company maintains a GREAT financial health score, reflecting its robust market position.
CCEP’s recent acquisition of the business in the Philippines has notably increased the company’s exposure to volume growth. While Indonesia presents potential as a future growth market, its current low penetration of carbonates means it is not yet a significant factor in the company’s performance. Nonetheless, CCEP holds a dominant market position in all its major markets, and it has been gaining market share in more than half of them.
The analyst, Nadine Sarwat, noted the company’s leadership status and share gains, indicating a solid position in the competitive landscape. The company has demonstrated its commitment to shareholder returns by raising its dividend for four consecutive years, currently offering a 3.1% yield. Despite these strengths, the updated target price now stands at USD 82/GBP 65.1/EUR 78.3, adjusted down slightly from the previous target due to the latest financial results and currency exchange rates. Based on InvestingPro’s Fair Value analysis, the stock appears to be trading above its intrinsic value, suggesting careful consideration for new positions.
Investors can look at these updated figures as the latest assessment of Coca-Cola Europacific Partners’ value and market performance expectations. The Market Perform rating suggests that Bernstein analysts believe the company’s stock will perform in line with the broader market expectations.
In other recent news, Coca-Cola Europacific Partners (CCEP) reported its full-year 2024 financial results, highlighting a revenue of €20.7 billion, marking a 3.5% increase year-over-year. The company’s operating profit rose by 8% to €2.7 billion, despite a slight revenue miss in the fourth quarter, coming in at €5.25 billion against forecasts of €5.3 billion. Analysts at Bernstein maintained a Market Perform rating on CCEP, setting a price target of $82, while noting the company missed its volume targets for the year. However, CCEP’s strong revenue per unit case growth resulted in a 3.5% adjusted comparable foreign exchange neutral growth. The company also announced a €1 billion share buyback program over the next twelve months, which is double Bernstein’s initial projections and is expected to be well-received by investors. The full-year comparable diluted earnings per share was reported at €3.95, consistent with both Bernstein’s estimate and the consensus. The strategic initiatives and strong overall performance of CCEP have bolstered market sentiment, as reflected in the company’s stock performance. Looking ahead, CCEP has provided guidance for approximately 4% revenue growth in 2025, supported by strategic partnerships and product innovations.
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