Coca-Cola stock price target raised to $81 from $80 at Deutsche Bank

Investing.com - Deutsche Bank (ETR:DBKGn) raised its price target on Coca-Cola (NYSE:KO) to $81.00 from $80.00 on Tuesday, while maintaining a Buy rating following the beverage giant’s second-quarter 2025 results. The $299 billion beverage company, which generates nearly $47 billion in annual revenue, continues to maintain impressive gross profit margins of 61%.

The firm expressed confidence in Coca-Cola’s second-half prospects, citing expectations for reaccelerating unit case sales volumes in the third quarter and second half of 2025, ongoing productivity improvements, and reinvestment initiatives. According to InvestingPro, the company has maintained dividend payments for 55 consecutive years and generally trades with low price volatility.

Deutsche Bank noted that Coca-Cola’s free cash flow is positively inflecting now that fairlife contingency and transition tax payments are complete, with likely foreign exchange benefits extending into fiscal year 2026.

The bank maintained its 2025 earnings per share estimate of $2.97 for Coca-Cola while raising its 2026 EPS forecast to $3.23 from $3.22 previously.

Despite acknowledging ongoing market challenges, Deutsche Bank believes Coca-Cola’s proactive approach and "all-weather strategy" should protect the stock from disappointment in the current environment while providing a solid foundation for 2026 and beyond.

In other recent news, Coca-Cola reported its second-quarter earnings for 2025, exceeding analyst expectations with an earnings per share (EPS) of $0.87, compared to the forecast of $0.83. This performance was primarily driven by stronger-than-expected gross margins, which expanded to 62.4%, surpassing consensus estimates. However, Coca-Cola’s revenue came in at $12.5 billion, slightly below the anticipated $12.55 billion. Despite this revenue miss, the company experienced a 5% growth in organic revenue, although there was a 1% decline in unit cases. CFRA has reiterated its Buy rating on Coca-Cola stock, maintaining a price target of $80.00 following these results. This affirmation comes after Coca-Cola’s earnings beat, supported by the company’s robust financial metrics. These developments reflect Coca-Cola’s current market performance and analyst sentiment.

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