12:10 PM EDT, 10/24/2024 (MT Newswires) -- Coca-Cola's (KO) solid organic sales growth in Q3 confirmed that the company will "land at a higher OSG pace than peers as industry pricing dissipates," Morgan Stanley said in a Wednesday report.

"Coke's stock was modestly down after Q3 EPS, with a modest volume miss in the quarter, and FX guidance for next year that was more onerous than consensus," the report said.

"However, we'd note underlying OSG (+5% ex hyperinflation even with temporary challenges in Q3) remains robust, as does Coke's OSG CAGR vs 2019 (similar in Q3 to H1), and Coke's forward commentary was positive," it said.

Coke's superior OSG position compared to peers is supported by factors like solid historical volume increases, a skew to higher-growth global regions, durable long-term pricing power, and market share gains, the report said.

After Q3 results, Morgan Stanley said its 2024 estimates for the company are "relatively unchanged" but the company's 2025 EPS forecast was cut by 3% due to forex pressure.

Morgan Stanley lowered its price target to $76 from $78 while keeping its overweight rating.

Price: 67.06, Change: -0.95, Percent Change: -1.40