D-Wave Quantum falls nearly 3% as earnings miss overshadows revenue beat
On Thursday, RBC Capital Markets sustained their Outperform rating and $69.00 price target for Coca-Cola stock (NYSE: NYSE:KO), anticipating a strong fourth quarter of 2024. The firm predicts that Coca-Cola will likely surpass consensus expectations due to robust organic growth in both domestic and international markets. With impressive gross profit margins of 60.4% and a strong financial health score rated as "GOOD" by InvestingPro, the company appears well-positioned. Despite this positive outlook, RBC Capital acknowledges the intensified foreign exchange (FX) headwinds caused by the strong dollar, which may place additional pressure on the company’s financial projections for 2025.
The analysts at RBC Capital project that Coca-Cola’s strong organic fundamentals will continue to drive the company’s performance. They believe that Coca-Cola is equipped to navigate through the ongoing volatility in the market, supported by its historically low price volatility and beta of 0.62. The firm suggests that Coca-Cola has various strategies at its disposal, such as pricing adjustments, revenue growth management (RGM), and cost-saving measures, which should enable the company to achieve modest earnings per share (EPS) growth. The company has demonstrated consistent performance, having raised its dividend for 54 consecutive years, according to InvestingPro data.
While RBC Capital remains positive about Coca-Cola’s ability to manage FX pressures, they also note that their earnings forecast for 2025 is currently below consensus, primarily due to the impact of foreign exchange rates. This caution reflects the broader challenges that multinational companies face when dealing with currency fluctuations.
Coca-Cola’s upcoming quarter results are highly anticipated by investors, as they will provide further insight into the company’s ability to maintain growth amidst a challenging economic environment. RBC Capital’s continued endorsement of Coca-Cola’s stock highlights the firm’s confidence in the beverage giant’s strategy and market position.
In other recent news, Coca-Cola has been the focus of multiple analyst adjustments. Piper Sandler lowered Coca-Cola’s stock price target from $74.00 to $73.00 due to anticipated increased currency headwinds in 2025, but maintained an Overweight rating. The firm also adjusted its earnings per share estimates for 2025 and 2026, citing currency fluctuations. On a positive note, Piper Sandler acknowledged Coca-Cola’s robust growth in the U.S. and potential for further expansion in emerging markets.
Concurrently, Deutsche Bank (ETR:DBKGn) upgraded Coca-Cola’s stock from Hold to Buy, raising its price target to $70. This change was attributed to Coca-Cola’s sustained strong performance and ability to navigate through macroeconomic challenges. Despite facing foreign exchange headwinds and unpredictable global economic conditions, Coca-Cola’s strategic emphasis on affordability and selective premiumization opportunities were highlighted as key factors in Deutsche Bank’s optimistic assessment.
In other company developments, Coca-Cola announced the retirement of board director Helene Gayle, who has served since 2013. Her contributions to the talent and compensation committee, as well as the corporate governance and sustainability committee, were recognized by the company’s Chairman and CEO, James Quincey. These recent developments reflect the ongoing adjustments and changes within Coca-Cola’s business landscape.
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