Coca-Cola price target raised to $80 from $75 at TD Cowen on strong volume

Investing.com - TD Cowen has raised its price target on Coca-Cola (NYSE:KO) to $80.00 from $75.00 while maintaining a Buy rating following the beverage giant’s third-quarter results. The company, currently valued at over $306 billion, has demonstrated strong market presence with impressive gross profit margins of 61.4%. According to InvestingPro analysis, Coca-Cola is currently trading above its Fair Value.

The firm cited Coca-Cola’s better-than-expected organic sales and earnings per share performance, which helped ease concerns about volume pressure stemming from weaker macro and micro economic conditions. With a P/E ratio of 25.06 and a stable dividend yield of 2.98%, Coca-Cola maintains its appeal as a defensive stock, showing low price volatility with a beta of 0.42.

Coca-Cola reported unit case volume growth of 1%, exceeding consensus estimates of 0.3%, and management reiterated its organic growth guidance of 5-6% for the year.

TD Cowen highlighted the company’s "all-weather" business model as a key strength, noting that Coca-Cola adapted quickly to region-specific challenges that emerged late in the quarter.

The positive assessment reinforces TD Cowen’s view that Coca-Cola’s business model remains resilient despite varying market conditions across different regions.

In other recent news, Coca-Cola has reported impressive third-quarter earnings, surpassing analyst expectations. The company achieved an earnings per share of $0.82, exceeding the anticipated range of $0.76 to $0.78, and marking a 6% increase from the previous year. Coca-Cola also reported organic revenue growth of 6% year-over-year, outpacing Goldman Sachs’ estimate of 4.7% and the consensus expectation of 4.3%. The company delivered $12.5 billion in revenue, surpassing the forecasted $12.41 billion. Following these strong results, Goldman Sachs raised its price target for Coca-Cola to $72, maintaining a Neutral rating. Meanwhile, Evercore ISI increased its price target to $82, keeping an Outperform rating, noting improved trends in September that contributed to unit case volume growth of 1%. Despite earlier concerns from management regarding macroeconomic pressures, Coca-Cola’s performance has demonstrated resilience. These developments highlight Coca-Cola’s ability to navigate challenging market conditions effectively.

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