The Coca-Cola Co. is planning to increase its stake in sports drink brand BodyArmor, according to a report by Beverage Digest.
Per the report, Coca-Cola (KO) has filed a pre-acquisition notification with the US Federal Trade Commission to take a majority stake in the fast-growing hydration drinks brand, BodyArmor. However, the financial terms of the transaction were not disclosed.
The beverage giant gained a minority stake in the BodyArmor brand in 2018 to expand its portfolio in the sports drink space, as reported by Food Dive. (See Coca-Cola stock analysis on TipRanks)
Earlier on Jan. 19, Bernstein analyst Callum Elliott initiated coverage on Coca-Cola stock with a Buy rating and a price target of $58 (15.8% upside potential). In a note to investors, Elliott said that the company is going through an “underappreciated cultural overhaul,” which would expand its sales, margin and earnings in the coming years.
Overall, consensus among analysts is a Moderate Buy based on 6 Buys and 5 Holds. The average analyst price target of $57 implies upside potential of about 14% to current levels. Shares have dropped by about 13% over the past year.
Furthermore, TipRanks data shows that financial blogger opinions are 91% bullish, compared to a sector average of 70%.
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