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Morgan Stanley reiterated an Obese ranking on Coca-Cola Firm (NYSE:KO) on its view the beverage large is about up for above-consensus post-COVID topline/EPS restoration forward by way of 2023.
Analyst Dara Mohsenian and staff level to new detailed evaluation displaying that consensus income stays too low on KO not solely in 2022, but in addition in 2023 and that KO’s pricing energy and away from dwelling restoration post-COVID drives a lot better KO near-term visibility than with CPG friends.
A number of the few key drivers of Morgan Stanley’s bullish view are the excessive diploma of conviction that Coke will put up above-consensus topline development in each 2022 in addition to in 2023, the upper EPS visibility seen on KO than with beverage friends, the sturdy pricing energy for KO with restricted demand elasticity, strong Coke earnings development potential after a previous close to decade of flat EPS, and what’s seen as engaging valuation following the latest share worth strain.
“Coke nonetheless has room for relative a number of enlargement, with Coke’s 2023 P/E a number of primarily in-line with mega-cap CPG friends PG/CL/PEP vs. a 6% premium to start with of 2020 pre-COVID.”
Morgan Stanley assigned a worth goal of $76 to Coca-Cola (KO) to rep near 25% upside and stand above the typical analyst worth goal of $69.82.
Shares of Coca-Cola (KO) fell 1.29% in early Monday buying and selling to $60.62.
Learn concerning the newest Nielsen monitoring knowledge on Coca-Cola.
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