Coca-Cola is called a top pick at Morgan Stanley with the rally expected to continue

Morgan Stanley expects the strong run for Coca-Cola Company (NYSE:KO) to continue. The firm kept an Overweight rating on the beverage stock and called it a top pick, despite the 2024 share price rally.

“We continue to like KO here in an absolute sense and even more relative to a group struggling with slowing [organic sales growth], as Coke’s fundamentals increasingly disconnect favorably from the group,” highlighted analyst Dara Mohsenian.

Coca-Cola (KO) is seen as well positioned to post strong, above-consensus, and above-peer underlying long-term organic sales growth. Strong international trends and higher international exposure are expected to work in the Atlanta-based company’s favor.

Morgan Stanley raised its price target on KO to $78 from $70 based on a 25.5X multiple to the 2025 EPS estimate. Shares of Coca-Cola (KO) and are up more than 20% on a year-to-date basis and reached an all-time high of $70.92 on Monday.