- Wells Fargo walks away from a meeting with Coca-Cola (KO +0.1%) CFO John Murphy with increased confidence on its Outperform rating and $60 PT on the beverage stock.
- Analyst Bonnie Herzog and team think Coca-Cola's topline growth is sustainable and see margin expansion amid a disciplined resource allocation environment. The Costa business is still seen as an exciting growth opportunity and provides KO with the ability to play across multiple platforms.
- "All in, despite a stretched valuation (KO is trading at a FY20 P/E multiple of 23.5x, 9% above its 3-yr historical avg), we see further upside in the stock as KO's momentum continues," advises Herzog.