Coca-Cola: shares move higher, broker upgrade sparks gains
(CercleFinance.com) - Coca-Cola shares gained ground on Wednesday as a broker's upgrade helped boost the US beverage giant's stock.
Morgan Stanley upgraded its rating of the soda maker from "equal weight" to "overweight", with a new target price of 54 dollars, which it raised from 52 dollars.
In a note to clients, the broker said the stock's recent underperformance and valuation discount versus peers has now become "too pronounced."
Despite near-term pressure from Covid, with half of Coke's sales mix in away-from-home, Morgan Stanley said it believes that second quarter was the low point, and considers the stock's relative valuation as "compelling".
The Coca-Cola shares are currently up 1.1%, outperforming a 0.3% rise in the Dow Jones index.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
Morgan Stanley upgraded its rating of the soda maker from "equal weight" to "overweight", with a new target price of 54 dollars, which it raised from 52 dollars.
In a note to clients, the broker said the stock's recent underperformance and valuation discount versus peers has now become "too pronounced."
Despite near-term pressure from Covid, with half of Coke's sales mix in away-from-home, Morgan Stanley said it believes that second quarter was the low point, and considers the stock's relative valuation as "compelling".
The Coca-Cola shares are currently up 1.1%, outperforming a 0.3% rise in the Dow Jones index.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.