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Coca-Cola Stock Shifts Higher on Street-High Bull Note

There is still plenty of room for more upgrades to KO

Managing Editor
Jan 9, 2020 at 11:08 AM
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Shares of Coca-Cola Co (NYSE:KO) are up 1.3% at $55.04, higher on the back of a fresh bull note. Specifically, Credit Suisse upgraded the stock to "outperform" from "neutral," and hiked its price target to a Street-high $64 from $54. The brokerage firm expects growth in revenue, margins, earnings, and cash flow, as well as "low double-digit" growth through 2021, driven by top-line growth. Plus, "a return to asset-light roots" will expedite the overall process and Coca-Cola's capital.

KO has done well over the past 12 months, now up 18.2%, with a floor of support re-emerging at its 80-day moving average. In fact, late last month the security came within a chip-shot of its early September record high of $55.92, and is now eyeing a close back above the $55 mark for the first time in 2020.

While today's bull note is a welcome treat for KO, there remains plenty of room for more upgrades. This is per the seven of 13 firms that are still sporting a tepid "hold" recommendation on the shares.

Lastly, now looks to be an attractive time for those looking to bet on KO stock to do with options. This is per its Schaeffer's Volatility Index (SVI) of 13%, which sits in the 12th percentile of its annual range. In simpler terms, options players are pricing in relatively low volatility expectations right now.

 

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