Analysts weigh in on Coca-Cola/BodyArmor deal
Aug. 14, 2018 10:53 AM ETThe Coca-Cola Company (KO)KO, PEP, MNST, KDPBy: Clark Schultz, SA News Editor21 Comments
- Wells Fargo analys Bonnoe Herzog thinks Coca-Cola's (KO +0.5%) investment in BodyArmor is a negative development for PepsiCo (PEP) and Keurig Dr Pepper (KDP -0.4%) as it has the potential to invigorate the company's sports drink business and stoke growth across the portfolio.
- Deutsche Bank analyst Steve Powers agrees that the Coca-Cola/BodyArmor deal could hurt Keurig Dr Pepper due to the probable loss of distribution. Powers is taking a wait-and-see stance on how the beverage shakeup will impact Monster Beverage (MNST +0.6%). He notes having Monster and BodyArmor sitting side-by-side in the Coca-Cola distribution network could hurt Monster down the road if it isn't managed carefully.
- Previously: Coca-Cola takes stake in BodyArmor (Aug. 14)
- Previously: Coca-Cola sees upside with BodyArmor business (Aug. 14)