Credit Suisse Cuts Losses, Gives Up on Coca-Cola (KO)

Credit Suisse has slowly lost its love for Coca-Cola (KO).

In mid-July, the bank reiterated OUTPERFORM on KO and its target price of $68. Cost pressures? Food inflation? Emerging market weakness? A poor North American outlook? No problem, said CS.

Then, a few days later in July, after KO’s Q2 earnings report, Credit Suisse remained steadfast that Coke was a winning stock despiteĀ  the market’s begging to differ. However, they cut their target from $68 to $60.

Now Credit Suisse has finally thrown in the towel. They have downgraded the stock to NEUTRAL and trimmed their target to $57. Why?

  • a strong dollar
  • competiton from Pepsi
  • difficultly in “reshaping” the North American market

So much for KO being one of Wall St.’s most beloved stocks.

Credit Suisse downgrades Coca-Cola (KO) from Outperform to NEUTRAL, target cut from $60 to $57.

See Also:
Coca-Cola’s (KO) China Gambit Working: $400 Million Olympic Bet Wallops Pepsi
Coca-Cola (KO): Our Secret Recipe Is All Natural, Healthy, Wholesome
Coca-Cola (KO): Quarter Fine But Market Clueless So We’re Giving Up

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