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- Goldman Sachs has upgraded Coca-Cola Europacific (NASDAQ:CCEP) from neutral to buy saying it is benefitting from volume-related tailwinds and has an appealing valuation.
- The firm upped its price target to $70 from $61 (~16% upside based on Friday's close).
- Goldman "is incrementally more positive on CCEP as its volume...has inflected positive post Q3, the company is seeing early progress on its transformation journey in Indonesia, and it sees potential upside to [gross margin] as commodity headwinds continue to abate, with a further benefit from efficiencies gained from CCEP's restructuring initiative in Indonesia."
- The firm also noted that GSCO believes that Coca-Cola Europacific's (CCEP) valuation is compelling at 13.9x estimated fiscal 2024 P/E multiple to consensus estimates, a figure 25% lower than the Consumer Staples Select Sector SPDR Fund ETF (XLP) and "below its five-year historical average discount of 21% despite its favorable growth profile next year."
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