Coca-Cola Gets Two Buy-Rating Reaffirmations After Raising Outlook

RBC and J.P. Morgan reaffirmed their Buy ratings on Coca-Cola after its latest quarterly results and higher full-year outlook, while Bernstein analyst Cristian Rios called the quarter “another clean beat, and a raise.”

RBC analyst Nik Modi kept his $96 price target unchanged. J.P. Morgan analyst Andrea Teixeira also maintained her $95 target. The bank actions followed Coca-Cola’s third-quarter results, released Tuesday, Oct. 27.

For the three months ended Oct. 2, net revenue rose 7% to $13.38 billion from $12.455 billion a year earlier. Organic revenue, a non-GAAP measure, also increased 7%. Global unit case volume grew 5%, while North American unit case volume was flat.

Comparable earnings per share, the company’s non-GAAP measure, increased 11% to 91 cents. Reported earnings per share rose 8% to 93 cents. The comparable and reported figures are separate measures of the quarter’s earnings.

Coca-Cola raised its full-year 2026 comparable EPS growth outlook to at least 11%, from a previous range of 9% to 10%. The company also lifted its free cash flow outlook to at least $13 billion from approximately $12.4 billion. Its organic revenue growth outlook moved to at least 5% from approximately 5%.

Rios had a Market-Perform rating on Coca-Cola. Before the results, he had focused on consumer spending and whether the company could sustain its earnings growth target amid spending pressure. His description of the quarter accompanied Coca-Cola’s higher outlook, while the two banks retained their existing price targets.