- Giugno 20, 2022
- Posted by: Oliver
- Categoria: Economics, Finance & accounting
Coca-Cola, one of the leading non-alcoholic beverage companies in the world, impressed investors with its stellar first-quarter results. The company’s first-quarter revenue grew 16% to $10.5 billion, fueled by a robust recovery in the away-from-home channels (like restaurants and movie theaters) following the reopening of the economy, and continued growth in the at-home consumption channels.
Strong top-line growth and the company’s pricing power helped drive a 16% rise in adjusted EPS to $0.64, more than offsetting the impact of inflationary pressures and higher marketing investments.
Morgan Stanley analyst Dara Mohsenian feels that analysts’ consensus estimate for Coca-Cola’s 2022 and 2023 revenue is too low, while he continues to have a “high degree of conviction” that the company will deliver above-consensus revenue growth in both the years based on his analysis.
Mohsenian believes that Coca-Cola’s pricing power and recovery in the away-from-home channel post-COVID drive much better near-term visibility for the company than its consumer packaged goods peers.
Mohsenian also sees better EPS visibility for Coca-Cola than its peers given “2022 revenue upside, stronger pricing power with limited demand elasticity, and a more manageable cost/demand elasticity vs. pricing gap.”
Mohsenian reiterated a Buy rating for Coca-Cola stock with a price target of $76.
Overall, the Street has a Strong Buy consensus rating on Coca-Cola stock based on 12 Buys and four Holds. At $71, the average Coca-Cola price target suggests 20.20% upside potential from current levels.
