TD Cowen on Wednesday increased its price target for Coca-Cola (NYSE:KO) to $85.00 from $80.00, while keeping a Buy rating on the beverage company’s stock. At the time of the firm’s revision, Coca-Cola was trading around $77.16 and near its 52-week high of $79.20.
The upgrade follows the company’s fourth-quarter results, which TD Cowen analyst Robert Moskow said included beats to consensus on organic sales and earnings per share. Coca-Cola reported a gross profit margin of 61.63% and a diluted earnings per share figure of $3.04 for the last twelve months, metrics TD Cowen cited in support of the higher target.
Despite the quarterly beat, Coca-Cola issued 2026 organic sales guidance calling for 4-5% growth, a range that TD Cowen suggested may sit below some investor expectations. The guidance was set against the company’s recent performance profile, which includes a reported 5-year revenue compound annual growth rate (CAGR) of 8% and a long-running streak of dividend increases stretching 55 consecutive years.
TD Cowen expressed confidence that Coca-Cola has the ability to reach the high end of the 4-5% organic sales range by relying on a mix of volume gains and price/mix improvement. The firm also highlighted the company’s broad international presence and its local franchisee bottling system as competitive advantages versus peers in the consumer packaged goods space.
Other brokerages adjusted their views after the earnings release. RBC Capital raised its price target to $87 from $78, characterizing the results as solid while flagging some temporary mix headwinds and timing considerations. Barclays lifted its target to $83 and emphasized Coca-Cola’s strategy of balancing pricing and volume. Morgan Stanley stuck with an Overweight rating and a price target of $81 following the report.
The company reported fourth-quarter adjusted earnings per share of $0.58, modestly ahead of consensus estimates that ranged from $0.56 to $0.57. The outperformance was attributed to lower-than-expected interest expenses and taxes rather than to clear operational strength, according to the reporting in the earnings release and subsequent analyst commentary.
In addition to the financial results and target revisions, Coca-Cola announced it will retain full ownership of Costa Coffee and said it is conducting a review of its operations in China, despite earlier considerations of divestment. RBC Capital had reiterated an Outperform rating and a $78 price target ahead of the earnings announcement, indicating expectations that the company would meet consensus estimates.
Collectively, the post-earnings reactions from TD Cowen and other firms reflect a market focus on Coca-Cola’s strategic choices, margin profile, and the durability of near-term sales growth as the company navigates mix dynamics and regional operational reviews.