RBC Capital reiterates Outperform rating on Coca-Cola stock with $76 target

Published 21/07/2025, 15:46
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Investing.com - RBC Capital has reiterated its Outperform rating on Coca-Cola (NYSE:KO) stock, maintaining a price target of $76.00. According to InvestingPro data, the stock currently trades at an EV/EBITDA multiple of 20.8x, with a robust gross profit margin of 61%.

The firm expects Coca-Cola to deliver a solid quarter with strong organic growth both domestically and internationally, particularly led by Latin America and EMEA regions, meeting consensus expectations.

RBC Capital notes that Coca-Cola’s organic fundamentals remain solid globally despite challenging macroeconomic conditions, positioning the company well to navigate through global volatility.

The beverage giant has appropriate levers at its disposal to deliver on yearly targets, including pricing strategies, revenue growth management, and cost-saving initiatives, according to the research firm.

RBC Capital also believes Coca-Cola will benefit from more favorable foreign exchange trends, which should help offset additional tariff headwinds the company faces.

In other recent news, The Coca-Cola Company announced the appointment of Luisa Ortega as the new president of its Europe operating unit, effective September 1. Ortega, who previously led the Africa unit, will replace Nikos Koumettis, who is set to retire in 2026. Additionally, Coca-Cola elected Jennifer Henry as Senior Vice President, where she will focus on strategy and corporate development. The company also declared a regular quarterly dividend of 51 cents per share, payable on October 1.

In another development, President Donald Trump claimed that Coca-Cola agreed to use real cane sugar in its U.S. products, though no official confirmation from the company was provided. Piper Sandler maintained an Overweight rating on Coca-Cola, setting a price target of $80, while adjusting some North American growth estimates. The firm highlighted potential growth from the Sprite + Tea innovation inspired by viral social media trends.

Coca-Cola’s 2025 Annual Meeting of Shareowners resulted in the election of directors and the approval of executive compensation, with the majority of votes cast in favor. The appointment of Ernst & Young LLP as independent auditors was also ratified. Several shareholder proposals, including those on non-sugar sweeteners and food waste, did not pass, reflecting strong shareholder alignment with the company’s current governance.

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