On Tuesday, Bernstein analysts maintained their Market Perform rating on Coca-Cola (NYSE:KO) Europacific Partners (NASDAQ:CCEP) shares, with a steady price target of $82, representing potential upside from the current price of $74.23. According to InvestingPro analysis, CCEP appears slightly overvalued at current levels, with analyst targets ranging from $61.62 to $93.51. The firm's analysts highlighted their expectations ahead of the company's 2024 financial results, which are scheduled for release on February 14, 2025.
Coca-Cola Europacific Partners had previously adjusted its revenue growth forecast for Fiscal Year 2024 (F24) to approximately 3.5%, a decrease from the earlier estimate of around 4%. This revision was attributed to consumer weakness and unfavorable weather conditions.
Despite the reduced revenue outlook, the company reaffirmed its profit growth and cash guidance, anticipating comparable operating profit growth of about 7% and comparable free cash flow (FCF) of approximately €1.7 billion. InvestingPro data shows the company maintains a strong financial health score of 2.94 (rated as GOOD), with a robust EBITDA of $3.16 billion in the last twelve months.
The analysts pointed out that the announcement of a full-year dividend per share of €1.97 and a guidance of a roughly 50% dividend payout ratio suggests that the market has a clear understanding of Coca-Cola Europacific Partners' Fiscal Year 2024 comparable earnings per share (EPS).
Notably, InvestingPro data reveals the company has raised its dividend for 4 consecutive years, with an impressive dividend growth of 81% in the last twelve months. They also forecast a stronger fourth quarter in Fiscal Year 2024, with increased activity in the home channel due to seasonal family gatherings during Christmas and New Year's Eve.
Looking forward, Bernstein analysts anticipate that Coca-Cola Europacific Partners will provide Fiscal Year 2025 guidance during the upcoming results announcement. They also expect an update on capital allocation guidance, noting that the company is projected to return to its stated target leverage range of 2.5x to 3.0x in Fiscal Year 2024.
In other recent news, Coca-Cola Europacific Partners (CCEP) has received several analyst upgrades.
Citi has raised the stock target to EUR82, maintaining a Buy rating and Morgan Stanley (NYSE:MS) upgraded CCEP from Equal-weight to Overweight, raising the price target to $87.00. Evercore ISI also updated its outlook on CCEP, raising the stock's price target from $78.00 to $82.00, maintaining an Outperform rating. Bernstein SocGen Group initiated coverage on CCEP with a Market Perform rating and set a price target of $82.00.
These upgrades are based on several recent developments, including the company's strong earnings and revenue results, its potential inclusion in the UK's FTSE index from March 2025, and the anticipated resumption of share buybacks. The company has also maintained its dividend growth for four consecutive years, with an impressive 81% dividend growth in the last twelve months.
In other news, Piper Sandler raised Docusign's stock target, citing signs of stabilization and growth potential.
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