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 despite 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.
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