Street Calls of the Week
Investing.com - Morgan Stanley initiated coverage on Coca-Cola Hellenic (LSE:CCH) (OTC:CCHGY) with an Overweight rating and a price target of GBP44.00 on Thursday.
The investment bank expects soft drinks to continue delivering strong volume growth within the beverages sector, particularly in emerging countries, which represent approximately 65% of Coca-Cola Hellenic’s revenue.
Morgan Stanley forecasts 6% organic sales growth for Coca-Cola Hellenic over 2025-28, which is 2 percentage points ahead of the broader beverages sector, citing better category mix and higher-growth end markets.
The firm notes that while the soft drinks market faces some structural challenges, including sugar taxes and healthier consumption trends, these pressures are less severe than those affecting alcohol, particularly spirits.
With approximately 83% of revenue coming from Coca-Cola Co. products, Morgan Stanley believes Coca-Cola Hellenic effectively combines global innovation with local expertise, allowing it to better adapt to market challenges while capitalizing on growth opportunities such as energy drinks.
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