Goldman Sachs analyst Bonnie Herzog maintained her neutral stance on KO stock and assigned a hold rating yesterday.
Bonnie Herzog has assigned her “Hold” rating based on a combination of factors related to Coca-Cola’s current financial situation and future prospects. Coca-Cola posted impressive Q3 results that exceeded investor expectations in both revenue and profit and featured healthy volume growth of 2%. In response to these strong results, the company increased its revenue and profit forecasts for FY23. However, management did not provide formal guidance for FY24, but expected a low single-digit percentage (LSD%) impact on revenue growth and a Mid-single-digit percentage (MSD%) impact on earnings per share (EPS). ) Growth due to exchange rate problems. This suggests limited dollar EPS growth next year.
Despite Coca-Cola’s strong sales growth and successful performance in a challenging environment, Herzog continues to see a neutral risk-reward balance due to ongoing legal issues with the IRS and potential tax liabilities. Additionally, Herzog is cautious because Coca-Cola is invested in floating rate debt, which is effectively around 45%, and because of Coca-Cola’s ability to generate dollar EPS growth given expected foreign exchange headwinds . As a result, Herzog maintains a $60 price target and a neutral rating on Coca-Cola.
In another report published yesterday, Deutsche Bank also reiterated its Hold rating on the stock with a price target of $60.00.
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Based on the recent corporate insider activity of 58 insiders, corporate insider sentiment is negative towards the stock. This means that more insiders sold their KO shares last quarter compared to the beginning of the year.
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Coca-Cola (KO) company description:
The Coca-Cola Co. offers non-alcoholic beverages, including carbonated soft drinks, water, fortified water, sports drinks, juices, dairy and plant-based drinks, tea, coffee and energy drinks. Major brands include Coca-Cola, Diet Coke, Coca-Cola Zero, Costa Coffee, Fanta, Sprite, Minute Maid, Georgia, Powerade, Fairlife, Del Valle, Schweppes, Aquarius, Dasani, Simply, Glaceau Vitaminwater, Gold Peak and Fuze tea and Glaceau Smartwater. The company was founded in 1886 by Asa Griggs Candler and is headquartered in Atlanta, GA.
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