Coca-Cola
shares hit an all-time intraday high Tuesday after the stock was upgraded to Buy at Guggenheim. The analysts see the beverage giant emerging stronger after implementing a corporate restructuring and focusing on its more profitable brands.
Coca-Cola stock rose 1.77% to $60.34 on Tuesday. Earlier in the session, the stock set a record of $60.47.
Guggenheim analyst Laurent Grandet raised the price target on the stock to $66 from $61. Grandet previously rated Coca-Cola (ticker: KO) shares at Neutral.
“We think the company is emerging leaner, and more agile with a portfolio focused on larger and more profitable brands that should drive better efficiency,” Grandet said.
In addition, Coca-Cola (ticker: KO) has been seeing a faster recovery over the last few months in emerging markets, excluding China and some Southeast Asian countries, despite low Covid vaccination rates, Grandet said. Emerging markets represent about 20% of Coca-Cola’s revenue.
Moreover, on-premise recovery is also faster than originally forecast, which is estimated to be back to about 90% of what it was pre-Covid levels in the final months of fiscal 2021.
Write to Karishma Vanjani at [email protected]
