Wall Street Bullish on Coca-Cola Stock Despite Revenue Miss
Morgan Stanley and Citi have doubled down on their bullish stance for Coca-Cola (NYSE: KO), upgrading price targets after the beverage giant's stock surged to yearly highs. Shares climbed 2.33% to $79 at Wednesday's close, marking a 14% year-to-date gain despite Q4 revenue falling short of estimates.
The company offset sluggish sales with strategic price hikes—4% in North America and 1% globally—while Coca-Cola Zero Sugar emerged as a standout performer with 13% sales growth. Analyst Dara Mohsenian of Morgan Stanley now forecasts an $87 target (up from $81), implying 11% upside from current levels.
Citi's Filippo Falorni, who accurately predicted KO's breach of $75 earlier, maintains confidence in the stock's discretionary spending resilience. Market sentiment suggests investors are willing to overlook short-term revenue volatility for the brand's pricing power and innovation pipeline.
