Coca-Cola (NYSE:KO) was named to Deutsche Bank’s fresh money list for Q4. The firm noted that market challenges remain for Coca-Cola (NYSE:KO), but believes the beverage giant’s proactive approach and all-weather strategy should broadly de-risk the stock from disappointment in the current environment while also providing a solid foundation for 2026 and beyond.
“While near-term volumetric challenges in markets like Mexico, India, Vietnam, and Thailand are real, KO’s underlying business momentum globally remains exceptionally strong,” updated analyst Steven Powers. Coca-Cola (NYSE:KO) was noted to be continuing to win in-market, aided by a well-aligned bottling system and a firm grasp on the controllables such as brand standing, innovation, RGM, and productivity.
Looking across the consumer packaged goods sector, Buy-rated Coca-Cola (KO) is seen as relatively advantaged relative to peers, with strong prospects for enduring organic sales momentum. The focus by the Atlanta-based company on affordability and targeted premiumization, pricing power, productivity runway, and mounting FX tailwinds leads to better visibility into FY26 earnings power, according to Powers.
On the financial front, Deutsche Bank continues to expect a dramatic inflection in Coca-Cola’s (KO) free cash flow conversion rate into FY26.
Deutsche Bank has a price target of $81 on Coca-Cola (KO).
Shares of Coca-Cola (KO) are down 3.1% over the last six weeks.