12:10 PM EDT, 07/15/2024 (MT Newswires) -- Coca-Cola (KO) is expected to achieve "solid" results in Q2, surpassing organic sales growth and earnings per share expectations and likely raising its 2024 EPS guidance, which should be well-received, Morgan Stanley said in a note Monday.

"More importantly, we see the structural advantages driving Q2 upside vs consensus and superior results vs. peers as likely to continue going forward in H2 and 2025," Morgan Stanley said.

The note cited several factors driving Coca-Cola's success, including consistent sales growth, a strong international presence, and its ability to maintain pricing power even in a slowing market, while also highlighting the company's market share gains.

Morgan Stanley forecasts Q2 organic sales growth of +9.7%, above the 9% consensus, driven by solid volume and "price/mix" dynamics, and EPS of $0.81, slightly above the $0.80 consensus.

"We also have become incrementally positive on [Coca-Cola]'s stock in the last few quarters as Coke's relative fundamental advantages vs peers decouple even more so in our minds," the note said.

Morgan Stanley has an overweight rating on Coca-Cola with a price target of $70.