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Investing.com - Goldman Sachs raised its price target on Coca-Cola (NYSE:KO), a $306 billion beverage giant with "GOOD" financial health according to InvestingPro, to $72.00 from its previous target while maintaining a Neutral rating following the beverage giant’s third-quarter earnings beat.
The beverage company reported third-quarter organic revenue growth of 6% year-over-year, exceeding both Goldman Sachs’ estimate of 4.7% and consensus expectations of 4.3%. Coca-Cola’s earnings per share reached $0.82, representing a 6% increase year-over-year and surpassing analyst estimates of $0.76 to $0.78. The company maintains impressive gross profit margins of 61.4% and has raised its dividend for 55 consecutive years.
Despite the strong quarterly performance, Coca-Cola maintained its full-year 2025 organic revenue growth guidance of 5-6% and its foreign exchange neutral EPS growth guidance of 8%, which Goldman Sachs noted remains strong relative to consumer packaged goods peers.
The stock reacted positively to the earnings report, gaining 4%, though Goldman Sachs expressed surprise at management’s modest initial fiscal year 2026 foreign exchange considerations, which suggested only a slight top and bottom line tailwind.
Goldman Sachs slightly raised its fiscal year 2025 and 2026 EPS estimates for Coca-Cola following the quarterly beat, but maintained its Neutral rating, indicating it sees more favorable risk-reward opportunities elsewhere in the sector. According to InvestingPro analysis, the stock is currently trading near its Fair Value, with 12 additional exclusive insights available for subscribers, including detailed valuation metrics and growth indicators.
In other recent news, Coca-Cola reported its third-quarter 2025 earnings, exceeding analyst expectations. The company achieved an earnings per share (EPS) of $0.82, surpassing the forecast of $0.78, which represents a 5.13% surprise. Coca-Cola also outperformed revenue projections, reporting $12.5 billion compared to the anticipated $12.41 billion. These results reflect a positive trend, as noted during the earnings call, where September showed improved trends contributing to a 1% growth in unit case volume. In response to these strong quarterly results, Evercore ISI raised its price target for Coca-Cola to $82 from $78, while maintaining an Outperform rating. The firm’s decision was influenced by the beverage company’s ability to deliver better-than-expected performance despite earlier macroeconomic concerns. These developments indicate a positive outlook from analysts, highlighting Coca-Cola’s resilience in the current economic climate.
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