Why Coca-Cola Stock Was so Fizzy Today
Key Points
The beverage titan posted a second quarter marked by strong growth figures.
On Wednesday, more than a few analysts raised their price targets on the shares.
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One day after Coca-Cola (NYSE: KO) stock hit an all-time high price, the storied beverage conglomerate repeated the accomplishment on Wednesday. The company's shares inched higher on the back of several bullish new post-earnings analyst takes.
So refreshing
Coca-Cola reported a strong second quarter on Tuesday and, as so often happens following a blowout earnings release, a score of analysts raised their price targets on the stock.
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One of the more bullish raisers was Dara Mohsenian of white-shoe investment bank Morgan Stanley. He not only cranked his fair value assessment to $100 per share from $89, he also reiterated (and emphasized) that Coca-Cola was a top pick at his company. Almost needless to say, he continued to rate the stock as an overweight (read: buy).
According to reports, he cited several impressive growth figures for the quarter. These included the company's unit case growth of 5% year over year (trouncing analyst projections of slightly more than 2%). Mohsenian added that growth in many areas would have been impressive even without the boost of the World Cup and the hotter-than-usual weather.
Other researchers lifting their price targets for the beverage sector king included analysts from such influential companies as JPMorgan Chase's J.P. Morgan and Wells Fargo.
The best in the business
To me, Coca-Cola's second quarter wasn't a one-off or fluke because of the above-mentioned factors.
Many advertisers were competing for attention during the World Cup, and American consumers in particular have plenty of choices when it comes to quenching their heat-induced thirst. The company's advertising and marketing efforts clearly struck a chord, illustrating one of its great and almost unbeatable strengths.
Coca-Cola is firing on nearly all cylinders these days, with a management team that knows the great value of the brand it's steering, and how to extract value from it. Plus, the stock is one of the best income plays on the market with its generous dividend. I've been a longtime Coke bull, and I can't imagine changing my stance, especially given its recent performance.
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JPMorgan Chase is an advertising partner of Motley Fool Money. Wells Fargo is an advertising partner of Motley Fool Money. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool has a disclosure policy.
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