S&P Capital IQ Reiterates its BUY Rating on Coca Cola, Target Price Reduced

October 19 00:00 2011

New York, October 19 (RainbowNewsLine.com) – Analyst Esther Kwon of S&P Capital IQ reiterates his BUY rating on the shares of Coca-Cola (NYSE:KO), while reducing the estimates for the company. The target price has been reduced from $79 to $77.

Analyst Esther Kwon, in a research note published yesterday mentions, that company reported its Q3 EPS inline with the estimates and marginally ahead of the consensus. The company’s volumes grew 5%, driven by international gains. However, North American organic growth was only 1%, as carbonate volumes dropped due to increase in pricing. The analyst is surprised by the increment in input cost estimate from $100M to $800M, which are supposed to get balanced by the hike in planned pricing. Due to unfavorable foreign exchange, the EPS estimate for 2011 has been reduced from $3.88 to $3.87.