Coca-Cola: Does the stock taste good after the quarterly results?

Last Updated: 8. März 2024By

Powerade, Lift Apple Spritzer, Vio, Apollinaris, Aquarius, Fanta or Sprite. Surely you have already consumed one of these drinks. The mentioned brands all have something in common, they belong to the Coca-Cola range. Now, the brand conglomerate has released new figures. Is the Coca-Cola stock still enjoyable after the new quarterly figures?

Coca-Cola increases sales and profits In the 4th quarter, the company achieved a profit of $0.49 per share, compared to $0.45 in the previous year. This result met analysts‘ expectations. Sales reached $10.85 billion, up from $10.13 billion the previous year. Analysts had expected $10.65 billion.

Inflation and geopolitical tensions affect markets „During the quarter, we benefited from strong performance in many of our markets,“ said Chief Executive James Quincey. „However, some were affected by high inflation and others by geopolitical tensions and conflicts.“

Less profit in 2024 For 2024, Coca-Cola expects profit growth of 4 to 5%, which would be only half of the 8% growth in 2023. Accordingly, the chart also looks subdued.

Coca-Cola: Maximum potential of 25% Conclusion: The numbers reported by the beverage conglomerate are quite promising. The sentiment among analysts is also positive. Overall, 18 out of 22 analysts recommend buying and 6 recommend holding. This year, the consumer stock has not really taken off. The average analyst price target of $66 has already been reached. Some analysts see potential for Coca-Cola up to $74, while others see $60 as more realistic. With a P/E ratio of 21, the consumer stock is moderately valued.

With the highest price target of $74, there is not much growth potential left for investors. With a dividend yield of 3.13%, investors are still sweetened with patience – just like Coca-Cola’s drinks.