Piper Sandler maintains Overweight rating on Coca-Cola stock

Investing.com - Piper Sandler has reiterated an Overweight rating on Coca-Cola (NYSE:KO) with a price target of $80.00, despite trimming some near-term North American growth estimates. Currently trading at $71.01, the beverage giant maintains strong analyst support with a consensus "Buy" rating and targets ranging from $59.60 to $86.00.

The firm has reduced its Q2 2025 North American organic sales growth estimate from 6.0% to 2.5% to better align with the company’s 2.8% U.S. measured retail sales growth in the quarter to date. Piper Sandler also cut its Q3 2025 North American organic sales growth forecast by approximately 3 percentage points. According to InvestingPro data, Coca-Cola maintains impressive gross profit margins of 61% and shows fair overall financial health.

These model adjustments reduce Piper Sandler’s 2025 earnings per share estimate by about $0.02, but more favorable currency conditions add approximately $0.02 back, keeping the full-year global growth projection just above the midpoint of Coca-Cola’s guidance.

The firm also models a $6.1 billion fairlife contingent consideration payment in Q2 2025 and believes Coca-Cola’s Sprite + Tea innovation can significantly contribute to growth, inspired by viral social media videos of consumers dipping tea bags into Sprite.

Piper Sandler maintained its 2025 EPS estimate of $2.96 and raised its 2026 EPS forecast from $3.19 to $3.21 due to favorable foreign exchange factors, while keeping its $80 price target unchanged.

In other recent news, Coca-Cola reported strong first-quarter results for 2025, with net sales of $11.216 billion and an adjusted earnings per share (EPS) of $0.73, meeting or slightly exceeding analysts’ expectations. The company maintained its full-year guidance, projecting organic sales growth of 5% to 6% and an adjusted EPS increase of 2% to 3%. UBS analyst Peter Grom raised the price target for Coca-Cola to $86, citing the company’s impressive performance and growth prospects, while Truist Securities and Morgan Stanley (NYSE:MS) reaffirmed their Buy and Overweight ratings with price targets of $80 and $78, respectively.

Coca-Cola’s organic revenue growth was noted at 6% year-over-year, driven by a 5% rise in pricing and a 1% increase in concentrate sales. Latin America showed a robust 13% growth in organic sales. The company declared a regular quarterly dividend of 51 cents per share, reflecting its ongoing financial performance and commitment to returning value to shareholders.

At the recent 2025 Annual Meeting of Shareowners, Coca-Cola’s director nominees were elected with a significant majority, and executive compensation was approved. Shareholder proposals regarding non-sugar sweeteners and food waste did not pass. The appointment of Ernst & Young LLP as independent auditors was ratified with substantial support. Analysts highlighted Coca-Cola’s strong market position, pricing power, and resilience against industry challenges, noting its visibility into growth prospects as a key factor in maintaining investor confidence.

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