Citi expects upgrades at Coca-Cola HBC, but stays at 'neutral'
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Coca-Cola HBC AG (CDI)
2,678.00p
17:15 05/07/24
Citi has reiterated a 'neutral' rating on Coca-Cola HBC, predicting that the stock will "pause for breath" ahead of its first-half results next month.
Beverages
20,708.25
16:48 05/07/24
FTSE 100
8,203.93
16:49 05/07/24
FTSE 350
4,530.08
16:48 05/07/24
FTSE All-Share
4,486.08
16:50 05/07/24
The bank said it expects the soft drinks bottling firm to meet consensus forecasts with second-quarter volumes, with organic sales predicted to grow by 9.4% when it reports its interim results on 7 August.
Meanwhile, a "solid first-half profit delivery" should allow the company to upgrade its full-year organic growth metrics and guidance for organic EBIT growth to the 9-12% range, up from the 3-9% range guided to in April.
"However, given: 1) the recent solid share price performance; 2) greater opportunity for Q3 earnings upgrades at other European beverage stocks, e.g. CCEP, Heineken; 3) share buyback support now absent ahead of the print; and 4) the stock trading on a full but fair ex: Russia PE of 18.0x, we expect the shares to pause for breath," said analyst Simon Hales.
The shares were up 1% at 2,708p by 1108 BST, having risen 17% over the year to date.