As of January 24, 2018, Coca-Cola (KO) stock was rated a “buy” by 52% (14 of 27) of the analysts covering the stock. Twelve analysts gave it a “hold” rating, and one recommended a “sell.” On January 12, 2018, Evercore ISI upgraded Coca-Cola stock from “in line” to “outperform” and assigned a price target of $55. On December 14, 2017, Deutsche Bank initiated coverage of Coca-Cola stock with a “buy” rating.
On January 4, 2018, Wells Fargo raised its price target for Coca-Cola stock to $52 from $51. On January 9, Cowen and Company raised its price target to $44 from $42. As of January 24, 2018, the 12-month average price target for Coca-Cola stock was $49.87. That reflects an upside potential of about 4%.
As of January 24, 2018, 57% (13 of 23) of the analysts covering PepsiCo (PEP) stock had a “buy” rating. The remaining ten analysts gave it a “hold,” and none of them gave it a “sell.” On December 14, 2017, Deutsche Bank initiated coverage for PepsiCo stock with a “buy” rating.
On January 4, 2018, Wells Fargo raised its price target for PepsiCo stock to $115 from $110. On January 8, Cowen and Company raised its price target for Pepsico stock to $133 from $128. On the same day, Susquehanna raised its price target to $137 from $132.
As of January 24, the 12-month average price target for PepsiCo stock was $125.42. That indicates a potential upside of 3.5% compared to the closing price of $121.14 on January 24.
PepsiCo is a leading snack food and beverage company with a portfolio that includes 22 brands, each generating more than $1 billion in estimated annual retail sales. Coca-Cola lacks a presence in the snack food business but has a dominant presence in the nonalcoholic beverage space. Coca-Cola has an extensive portfolio of 500 sparkling and still beverage brands, including 21 brands that each generate more than $1 billion in annual retail sales.
Changing consumer tastes with a preference for healthier choices have been impacting the performance of these soda giants.
In the next part of this series, we’ll look at the valuations for these companies.