CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lower our 12-month target by $2 to $66, based on a ’25 P/E of 22.0x, a discount to KO’s 10-year mean forward P/E of 23.2x. We maintain our adjusted EPS estimates of $2.85 for ’24 and $3.00 for ’25. KO posts Q4 adjusted EPS of $0.49 vs. $0.45 (+9%), in line with consensus. Stronger-than-expected revenue offset weaker-than-forecasted margins, as revenue rose 7% to $10.85B ($200M ahead of consensus), driven by price/mix (+9%) and concentrate sales (+3%), partially offset by currency and other net changes (-5%). Notably, Latin America remained particularly strong, with segment net revenue up 16%. Gross margin expanded 190 bps to 57.3%. KO introduced 2024 adjusted EPS growth guidance of 4%-5%, implying EPS of $2.80-$2.82 (current consensus: $2.81). While we believe the guidance reflects some conservatism, with EPS growth expected to slow and comps becoming more difficult, we lower our opinion one notch to Buy. While volumes were better than expected, it was an in-line quarter and guidance was also in line.