01:18 PM EST, 02/03/2025 (MT Newswires) -- Coca-Cola (KO) will likely continue delivering mid-single-digit organic revenue growth this year and outperforming peers despite a challenging earnings backdrop, UBS Securities said Monday.

While Coca-Cola's shares had a tough end to 2024, industry conversations and crowding analysis "suggest that sentiment remains constructive," a group of analysts including Peter Grom said in a research note. The brokerage reiterated a buy rating and a $72 price target on the stock.

"Investors have questioned whether the stock can work given what is likely to be a more challenged (earnings per share) growth backdrop in (2025)," Grom said. However, Coca-Cola's ability to deliver mid-single-digit organic revenue growth stands out as many global staples peers are likely to deliver low-single-digit expansion, with some struggling to hit their algorithm, he said.

Management in October outlined expectations for a currency headwind of a mid-single digit to 2025 earnings. There's also a low-single-digit headwind related to higher interest expenses, Grom wrote. Investor concerns over Coca-Cola's ability to deliver EPS growth have "increased considerably" over the last several months as the dollar strengthened, according to the analysts.

Adverse foreign exchange impacts will be a "greater hurdle relative to the company's prior guidance," but UBS still sees a path to EPS growth, according to the research report. The brokerage's 2025 EPS estimate of $2.89 assumes 1% annual growth and is four cents below the Visible Alpha consensus.

"We think the bottom line concerns are largely understood/priced in at this stage," Grom wrote. "The risk/reward continues to skew to the upside."

For the fourth quarter, UBS is modeling for EPS of $0.52, in-line with the consensus and toward the high end of the company's implied guidance range of $0.49 to $0.52, the research report showed. The brokerage is projecting revenue growth of $10.74 billion, above the consensus view of $10.68 billion.

The soft drinks maker is scheduled to report results for the fourth quarter on Feb. 11.

Price: 63.47, Change: -0.01, Percent Change: -0.02