RBC Capital has increased its price target for Coca-Cola to $87.00 from $78.00 and maintained an Outperform rating on the beverage company’s shares. The newer target implies about a 13% potential gain from the stock's then-current trade around $76.81, with the share price trading close to its 52-week high of $79.20.
The firm described Coca-Cola's recent results as "solid," while acknowledging the business encountered some "temporary mix headwinds and timing factors" that weighed on near-term performance. RBC highlighted the company's strong gross profit margin, reported at 61.63%, and reiterated that the company has continued to deliver for shareholders.
RBC said that, notwithstanding the short-term headwinds, the "underlying momentum in the portfolio prevails." In its analyst note, the firm stated that recent quarterly outcomes did not alter its confidence in Coca-Cola's ability to navigate a challenging global operating backdrop.
RBC's $9 increase in the price target reflects the firm's continued positive stance on the business and its prospects. In parallel commentary on the quarter, Coca-Cola reported fourth-quarter adjusted earnings per share of $0.58, above the consensus range of $0.56 to $0.57. RBC and others noted that the earnings surprise was driven more by lower-than-expected interest expense and taxes rather than an acceleration in core operating performance.
Following the earnings release, several other major brokerages updated their views and targets. Barclays raised its target to $83, pointing to a balanced contribution to growth between price/mix and volumes. Morgan Stanley reiterated an Overweight rating and set a $81 price objective. UBS kept a Buy rating with an $82 target and forecast fourth-quarter adjusted EPS of $0.56, while expressing expectations for continued organic growth.
The company also announced strategic decisions alongside its results: Coca-Cola will retain full ownership of Costa Coffee and is conducting a review of its operations in China.
Separately in coverage noted by analysts, RBC Capital was also recorded as maintaining an Outperform rating and a $78 price target while anticipating Coca-Cola would meet consensus expectations in its upcoming earnings report. These various notes reflect differing views and timing across analyst teams as they incorporate the latest quarterly data into their models.
Market consensus metrics referenced alongside the analyst activity showed an overall bullish tilt: third-party data noted an analyst recommendation rating near 1.71, indicating a positive stance among aggregators of broker views.
For investors tracking pricing power and volume dynamics in consumer staples, the recent revisions and commentary from sell-side desks underscore the balance between resilient margins and near-term operational noise. Analysts cited both structural margin strength and temporary demand or timing issues as they adjusted targets and reiterated ratings.
As analysts continue to parse quarterly detail, the range of price targets and maintained ratings suggest confidence in Coca-Cola's longer-term profile even as some brokers point to transitory pressures in mix and timing that could affect short-term comparisons.