08:15 AM EDT, 04/30/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We increase our 12-month price target by $2 to $68, based on a '25 P/E of 22.7x, a discount to KO's 5-year average forward P/E of 24.5x. We maintain our adjusted EPS estimates of $2.85 for '24 and $3.00 for '25. KO posts Q1 adjusted EPS of $0.72 vs. $0.68 (+7%), two cents ahead of consensus. The beat was driven by stronger-than-expected sales and margins, as revenue rose 3% to $11.3B ($330M ahead of consensus), driven by price/mix (+13%), partially offset by currency (-6%), concentrate sales (-2%), and other net changes (-2%). Gross margin expanded 180 bps to 62.5% (130 bps above consensus). KO maintained 2024 adjusted EPS growth guidance of 4%-5%, implying EPS of $2.80-$2.82 (current consensus = $2.81). We think the strong results should alleviate concerns regarding slowing growth and consumer pushback to recent price increases, but KO's brand strength has led to more resilient sales than soft drink peers, and now moderating cost pressures are helping act as a gross margin tailwind.