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Coca-Cola (KO) gained 12.5% year-to-date versus flat S&P 500 returns. The biggest event this week was the company announcing earnings on February 10th.
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UBS raised Coca-Cola’s price target to $87 following 5% organic revenue growth in Q4.
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New CEO Braun said Coca-Cola innovation is not meeting standards and takes over March 31.
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Coca-Cola (NYSE:KO) closed Friday at $78.67, down 0.5% for the week but up 12.5% year-to-date.
That crushes both the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) (flat YTD) and is close to the Consumer Staples Select Sector SPDR Fund (NYSEARCA:XLP) (up 15.2% YTD).
Three storylines drove the action: Q4 earnings sparked analyst upgrades, incoming CEO Henrique Braun outlined aggressive innovation priorities, and portfolio moves signal where it’s betting for growth.
Coca-Cola reported Q4 results on February 10 that beat on earnings but missed on revenue. EPS of $0.58 beat estimates of $.56, while revenue of $11.8 billion came in light. The real story was organic revenue growth of 5% and unit volume up 1%, showing demand holds despite consumer spending pressure.
UBS raised its price target from $82 to $87 on February 12, citing “stability of Coca-Cola’s core business fundamentals.” TD Cowen and BofA Securities both reaffirmed Buy ratings. Consensus now sits at $82.28, with 19 analysts rating it Buy or Strong Buy versus just five Holds.
The confidence stems from margin expansion potential and Zero Sugar momentum. Coca-Cola Zero Sugar grew 13% by volume, capturing consumers shifting from full-calorie drinks. Management guided to 4-5% organic revenue growth and 7-8% EPS growth for 2026, though that EPS outlook trails consensus.
Henrique Braun takes over as CEO on March 31, and he’s already signaling change. Braun said current innovation efforts are “not meeting required standards” and committed to faster product launches and better consumer engagement.
The company is creating a Chief Digital Officer role and establishing regional excellence hubs to push decision-making closer to local markets. Braun’s billion-dollar brand strategy focuses on identifying emerging local brands and scaling them globally, similar to how Santa Clara dairy crossed the $1 billion threshold.
Product announcements included expanding the cherry-flavored line with a Cherry Float variant and introducing 7.5-ounce mini cans positioned as affordable options for convenience stores. These moves address consumer spending pressure without explicitly cutting prices.
