UBS, seeing buying opportunity, upgrades shares of Coca-Cola
By APThursday, March 4, 2010
UBS upgrades Coca-Cola shares
PORTLAND, Ore. — UBS Investment Research on Thursday upgraded its rating on Coca-Cola, saying a buying opportunity exists as the company acts more aggressively in the marketplace.
Coca-Cola Co.’s management is “more willing, nimble and aggressive” than it has been in the past, UBS analyst Kaumil Gajrawala wrote in a research note. The company’s recent decision to buy its U.S. bottler, while a difficult choice he noted, was a good long-term move and demonstrates the leadership’s willingness to adapt when necessary.
Gajrawala upgraded Coca-Cola shares to “Buy” from “Neutral.” He kept a $62 price target on the stock.
Looking forward, Gajrawala said the company should deliver strong volume growth, free cash flow and some benefits from cost cutting. And despite strong operating performance, the company’s shares have been trading lower than its peers and carrying a near record-low dividend yield.
Shares of Coca-Cola rose 55 cents to $54.48 in afternoon trading.
