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.

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