Bernstein SocGen Group has adjusted its valuation view of Coca-Cola Europacific Partners, lowering the price target to EUR72.50 from EUR73.10, while keeping the stock at a Market Perform rating. The firm cited valuation as the driver of the change.
On the market, the shares are trading at $104.47, which is close to the 52-week high of $104.71 reported by InvestingPro data.
The analyst noted that Coca-Cola Europacific closed the year on a solid footing. For fiscal 2025, the company recorded 2.8% adjusted comparable, foreign-exchange-neutral revenue growth. That outcome reflected largely flat volumes offset by a positive price-mix, and aligns with the company’s recent revenue growth trend of 2.27%.
Margin gains were a notable contributor to results. Adjusted comparable, foreign-exchange-neutral operating profit increased by 7.1%. Earnings per share landed in line with Bernstein SocGen’s expectations and were 0.5% ahead of consensus estimates.
On valuation metrics, the company trades at a P/E ratio of 19.8 and has a PEG ratio of 0.53, which Bernstein SocGen highlighted as indicating an attractive valuation relative to growth.
The analyst emphasized the predictability of Coca-Cola Europacific’s business model as a core strength, noting the company’s ability to use both revenue and margin initiatives to support performance. Management has signaled that these revenue and margin levers retain significant runway, even in mature markets such as Europe, and that they will remain important drivers for the company.
In its latest quarterly update for Q4 2025, Coca-Cola Europacific reported overall robust financial results. Full-year revenue rose by 2.8% to €20.9 billion. Earnings per share increased by 6.2% to €4.11, while operating profit grew by 7.1% to €2.8 billion. The company also returned €1.9 billion to shareholders via dividends and buybacks.
Taken together, the results underscore the company’s stable financial position and the role of price-mix and margin improvement in sustaining earnings growth. The modest revision to the price target reflects Bernstein SocGen’s assessment of valuation rather than a material change in operational momentum.
Summary
- Bernstein SocGen cut the CCEP price target to EUR72.50 from EUR73.10 and maintained a Market Perform rating.
- Fiscal 2025 results showed 2.8% adjusted comparable revenue growth and 7.1% operating profit growth, with EPS modestly above consensus.
- CCEP trades near its 52-week high at $104.47, with a P/E of 19.8 and PEG of 0.53.
Key points
- Performance drivers: Price-mix and margin expansion were the primary contributors to revenue and operating profit growth for fiscal 2025.
- Valuation adjustment: The analyst reduced the price target on valuation grounds while retaining a Market Perform view.
- Market and sector impact: The developments are most relevant to the beverage and consumer staples sectors, as well as equity analysts and investors tracking CCEP.
Risks and uncertainties
- Volume stagnation - Volumes were largely flat in fiscal 2025, which could constrain top-line growth if price-mix and margin improvements do not continue to offset volume trends.
- Execution reliance - Continued revenue and margin gains depend on the successful implementation of management initiatives, particularly in mature markets such as Europe.
- Valuation pressure - The small downward revision to the price target highlights sensitivity to valuation assessments that can influence analyst views and investor sentiment.