Jefferies raises Coca-Cola HBC stock target to £37.50, maintains Buy

On Thursday, Jefferies analyst Edward Mundy updated Coca-Cola (NYSE:KO) Hellenic’s (CCH:LN) (OTC: CCHGY) financial outlook, raising the company’s price target from £32.00 to £37.50 while sustaining a Buy rating on the stock. Currently trading at $39.75 and near its 52-week high, the company has demonstrated remarkable stability with low price volatility, according to InvestingPro data. Mundy’s assessment reflects his confidence in the company’s ability to handle a challenging market environment, attributing this resilience to strategic investments made in recent years.

The analyst highlighted that Coca-Cola Hellenic’s core business segments, which include Sparkling beverages, energy drinks, and coffee, are performing robustly. With a market capitalization of $14.46 billion and steady revenue growth of 3.28%, the company has maintained strong operational performance. The company’s adeptness at managing external market fluctuations was also noted as a positive factor, supported by its GREAT financial health score from InvestingPro. Mundy’s commentary suggests that the company’s shares are currently undervalued given its quality, stating that the stock is "inexpensive for the quality."

Jefferies’ revised price target is based on the company’s expected calendar year 2026 P/E ratio of 14.3x, which is lower than the 16.2x average P/E ratio for the staples sector. Currently trading at a P/E ratio of 22.19x, with a moderate debt level and consistent profitability, this comparison indicates that Coca-Cola Hellenic’s stock might offer a more attractive investment opportunity compared to its industry peers.

The analyst’s outlook for Coca-Cola Hellenic is underpinned by the belief that the company possesses ongoing opportunities for value creation. This potential for further growth and profitability is anticipated despite the broader challenges that companies face in the current economic climate.

Investors and market watchers may consider the revised price target and maintained Buy rating as a sign of Jefferies’ positive expectations for Coca-Cola Hellenic’s financial performance and stock potential in the coming years.

In other recent news, Coca-Cola HBC AG has been the subject of several significant analyst evaluations. Bernstein SocGen Group has raised its price target for the company to GBP 35.00, citing the firm’s growth prospects, particularly in emerging markets. The firm anticipates approximately 7.5% normalized net sales growth, driven by Coca-Cola HBC’s performance in faster-growing markets, and a roughly 13% normalized earnings per share (EPS) compound annual growth rate.

Kepler Cheuvreux, on the other hand, initiated coverage on Coca-Cola HBC with a Hold rating and a price target set at GBP29.20. The firm forecasts approximately 7% growth in earnings before interest and taxes (EBIT) and 9% growth in earnings per share (EPS) for the company, considering key risks such as the company’s exposure to the Russian market and economic volatility in Africa.

BNP Paribas (OTC:BNPQY) Exane has upgraded Coca-Cola HBC’s rating from Neutral to Outperform, increasing its price target to GBP0.34. The firm anticipates that Coca-Cola HBC will achieve a like-for-like (LFL) sales growth of 8.8% in 2025, which surpasses the average sector expectation of 7.0%.

Finally, Bernstein SocGen Group rates Coca-Cola Hellenic as Outperform, setting a price target of GBP34.50. Despite potential risks associated with foreign exchange and the challenges of operating a Russian business, the analyst believes the stock has been undervalued. These are the recent developments for Coca-Cola HBC.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.