Coca-Cola: The Stock Has Been Substantially De-Risked, Says RBC Capital

In a research report published on today, RBC analyst Nik Modi maintained an Outperform rating on shares of Coca-Cola Company (NYSE:KO) and slightly reduced his price target to $47 (from $50), which still represents a potential upside of 11.5% from where the stock is currently trading.

Modi commented: “Despite the shock and awe performance of KO post its earnings, the stock’s relative performance among mega cap consumer staples (defined as $30 bn+) over the past 12-months has been in the middle of the pack. With the company essentially backing off many of its 2020 targets and implied guidance for limited EPS growth in 2015, we believe the stock has been substantially de-risked.”

The analyst continued, “We are lowering our 2015 EPS estimates to $2.15 from $2.28 and lowering our target to $47 from $50, but retain our Outperform as we believe KO shares have been de-risked and could be set up for a potential “PepsiCo Scenario” over the next 12-18 months.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Nik Modi has a total average return of -7.1% and a 75.0% success rate. Modi has a 14.1% average return when recommending KO, and is ranked #2978 out of 3388 analysts.


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