Look for Coca-Cola (KO) to extend its recent winning streak during 2025, analysts at Morgan Stanley said in a research note that followed the soft-drink and beverages company this week rolling past Wall Street expectations with its Q4 results.
The company Tuesday reported non-GAAP net income of $0.55 per share for its Q4 ended Dec. 31, up from $0.49 per share a year-ago and topping the analyst consensus of $0.52 per share. Net operating revenue increased 6.4% year-over-year to $11.54 billion, beating the $10.68 billion Street view.
The better-than-expected Q4 results followed a somewhat disappointing performance by Coke the prior quarter, according to the Morgan Stanley analysts, with the strong rebound suggesting its "Q3 weakness was more of an aberration," they said.
Looking forward, the analysts are expecting organic sales at Coca-Cola to grow by 6.3% during 2025, more than doubling the 3% year-over-year rise projected for its peers and even topping the company's guidance looking for 5% to 6% growth this year.
They also see Coke beating profit forecasts during 2025 and beyond, with its topline growth supporting a modest increase in Morgan Stanley's price target for the stock to $78 from $76 previously and reflecting a multiple of 24 times their revised projections for fiscal 2026 per-share earnings.
Morgan Stanley on Wednesday also reiterated its overweight rating for Coca-Cola.
Price: 67.94, Change: +0.34, Percent Change: +0.50
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