CFRA raised its 12-month price target on Coca-Cola (NYSE:KO) to $80 from $68, maintaining a Buy rating as favorable currency dynamics and domestic brand strength position the beverage giant for upside.
While earnings estimates remain unchanged, CFRA sees the recent decline in the U.S. dollar as a significant catalyst for Coca-Cola’s bottom line. With 61% of its revenue generated outside the U.S., a weaker dollar improves international profitability when converted back into U.S. dollars. In 2024, U.S. revenue grew 11% year-over-year, while international sales dipped 2%, highlighting domestic resilience.
The firm also points to Coca-Cola’s fairlife brand as a key, underappreciated growth engine. Annual sales have already surpassed $1 billion, and expansion is set to accelerate with the completion of a $650 million production facility in New York later this year.
Despite ongoing debates around health-related policy shifts and tariff risks, CFRA believes those concerns are already priced in. With a healthy dividend yield supporting long-term returns, Coca-Cola is seen as a solid opportunity for investors seeking both growth and income.
