UBS Sees Stability in The Coca-Cola Company’s Core Business, Raises PT to $87
The Coca-Cola Company (NYSE:KO) is included among the
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On February 11, UBS lifted its price recommendation on The Coca-Cola Company (NYSE:KO) to $87 from $82. It reiterated a Buy rating on the stock. The analyst acknowledged that the quarter was more complex than usual but said the company’s core fundamentals remain steady. Coca-Cola reported its Q4 2025 results on February 10.
On the earnings call, Chairman and CEO James Quincey looked back at the four priorities he first laid out at CAGNY 2017. At the time, the company set out to reshape its brand portfolio around consumers, strengthen its operating system, digitize the organization, and make better use of its workforce. He pointed to the expansion of the portfolio, with several new $1 billion brands added over the years, bringing the total to 32 globally. He also addressed earnings momentum. After a long stretch where EPS hovered around $2, comparable EPS reached $3 in 2025. This came despite continued currency pressure, marking what he described as a meaningful shift in trajectory.
Henrique Braun, currently EVP and Chief Operating Officer and set to become CEO, spoke about the broader environment. He said 2025 was challenging externally, yet the company still delivered on the revenue and earnings guidance it issued at the start of the year. He also noted that Coca-Cola has now achieved 19 straight quarters of value share gains.
Braun highlighted growth in North America and the addition of new billion-dollar brands, including Santa Clara in Mexico. He referenced recent product launches such as Sprite Chill and Coca-Cola Holiday Creamy Vanilla as part of the company’s innovation pipeline. Looking ahead, he said management will focus on engaging younger adult consumers, increasing the pace of innovation, and embedding digital tools more deeply into consumer strategies.
President and CFO John Murphy outlined the quarterly results in detail. Organic revenue rose 5% in the fourth quarter, while unit case volume increased 1%. Concentrate sales exceeded unit case growth by three points, mainly due to shipment timing and the benefit of an extra reporting day. Comparable EPS came in at $0.58, up 6% year over year, despite a 5% currency headwind and a higher effective tax rate.
The Coca-Cola Company (NYSE:KO) operates across multiple regions, including Europe, the Middle East and Africa, Latin America, North America, and Asia Pacific. Its portfolio spans several beverage categories worldwide, including sparkling soft drinks such as Coca-Cola, Sprite, and Fanta.
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