Key Stats for Coca-Cola Stock
- Price change for Coca-Cola stock in last 6 months: 12%
- $KO Stock Price as of Oct. 8: $88
- 52-Week High: $92
- $KO Stock Price Target: $94
Now Live: Discover how much upside your favorite stocks could have using TIKR’s new Valuation Model (It’s free)>>>
What Happened?
Coca-Cola (KO) is looking to unwind its $5 billion purchase of British coffeehouse Costa Coffee, Semafor reported on Thursday.
The report cited people familiar with the matter. Coca-Cola didn’t immediately respond to a request for comment.
The company bought Costa in 2018 for $5.1 billion. The goal was to push further into healthier drinks.
In January, the Financial Times reported that Coca-Cola scrapped plans to sell Costa, but private equity offers came in below expectations.
Semafor says at least one strategic buyer also looked at a deal. It passed because of valuation and strategic issues.
It’s unclear what price Coca-Cola would ask if it put Costa back on the market.
See analysts’ growth forecasts and price targets for Coca-Cola stock (It’s free) >>>
What the Market Is Telling Us About Coca-Cola Stock
For Coca-Cola stock, this looks like a side story. Costa is a small part of a much larger business. The core drinks business is doing the heavy lifting.
On the Q2 call, Coca-Cola reported 6% organic revenue growth. Volume rose 5%.
Management said part of that came from an easier comparison last year, good weather, and the FIFA World Cup. Over two years, volume growth was 2%.
Margins improved too. Comparable gross margin rose about 120 basis points. Comparable operating margin rose about 90 basis points. Comparable earnings per share was $0.97, up 11%.
The balance sheet is strong. Net debt leverage was 1.4x EBITDA. That is below the company’s target range of 2 to 2.5x.
Management said this gives it room to reinvest and return money to shareholders.
Coca-Cola also raised its 2026 outlook. It expects about 5% organic revenue growth and 9% to 10% comparable earnings per share growth.
The company is also simplifying in other ways. It is also pursuing a pending sale of Coca-Cola Beverage Africa. It expects that deal to close late in Q3 or in Q4.
Still, a failed Costa sale shows the limits of selling assets at the right price. Coca-Cola stock may react to any news on a price or buyer.
For now, Coca-Cola stock is mostly trading on its core growth and margins. Investors in Coca-Cola stock will also watch whether a Costa deal comes together.
Estimate a company’s fair value instantly (Free with TIKR) >>>
So what is Coca-Cola stock actually worth?
TIKR lets you forecast the future price of any stock in less than a minute. Just enter a few assumptions into TIKR’s valuation model and see what KO stock could be worth. Start from Wall Street consensus estimates, or adjust the inputs to reflect your own view of the business. It’s free to use.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
