03:05 PM EST, 02/03/2025 (MT Newswires) -- Coca-Cola (KO) is likely to report Q4 earnings in line with estimates, UBS said in a note Monday.

The firm said it expects Q4 earnings to come in at $0.52 per share, the same as forecasts, and at the high end of the company's guidance range of $0.49 to $0.52 per share.

Meanwhile, investors wondered in conversations with UBS whether the stock could work given a more challenging EPS growth backdrop in 2025.

In October, the company's management said it expected earnings growth to decline by mid-single-digit percentage in 2025, which, combined with a negative low-single-digit percentage headwind related to higher interest expense, was raising worries whether the company will be able to deliver EPS growth in the US dollar, UBS said.

"With the dollar having strengthened over the last several months, these concerns have increased considerably," UBS wrote.

However, the firm said it still believed the risk-to-reward ratio continued to favor the upside as a lot of these factors were already factored into the company's stock price.

UBS also said it saw a path to EPS growth in US dollar terms despite foreign currency related hurdles. The firm said it believed in the company's ability to deliver strong mid single-digit-organic revenue growth in an environment where many other global peers were likely to deliver low-single-digit growth, and in some cases struggle to hit their algorithm.

UBS has a buy rating on the stock with a price target of $72.

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