Coca-Cola's Revenue And Profit Shows Resilient Growth Amid Inflation: Goldman Sachs
Portfolio Pulse from Shivani Kumaresan
Goldman Sachs analyst Bonnie Herzog reiterated a Neutral rating on Coca-Cola (NYSE:KO) with a price target of $60. KO delivered a strong Q2 performance with an EPS beat of $0.84, driven by a 9% y/y price/mix growth and gross margin expansion. Despite inflation and cost pressures, KO raised its FY24 guidance. However, ongoing f/x headwinds and litigation with the IRS pose risks.
July 23, 2024 | 6:03 pm
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Goldman Sachs reiterated a Neutral rating on Coca-Cola (KO) with a $60 price target. KO's strong Q2 performance, driven by a 9% y/y price/mix growth and gross margin expansion, led to an EPS beat of $0.84. Despite inflation and cost pressures, KO raised its FY24 guidance. However, ongoing f/x headwinds and IRS litigation pose risks.
The strong Q2 performance and raised FY24 guidance are positive indicators for KO. However, the analyst's Neutral rating and concerns about f/x headwinds and IRS litigation suggest a balanced risk/reward scenario, leading to a neutral short-term impact.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100