Coca-Cola’s Week in Review: Analysts Raise Price Targets Q4 Beat

Coca-Cola (NYSE:KO) closed Friday at $78.67, down 0.5% for the week but up 12.5% year-to-date.

That crushes both the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) (flat YTD) and is close to the Consumer Staples Select Sector SPDR Fund (NYSEARCA:XLP) (up 15.2% YTD).

Three storylines drove the action: Q4 earnings sparked analyst upgrades, incoming CEO Henrique Braun outlined aggressive innovation priorities, and portfolio moves signal where it’s betting for growth.

The Earnings Beat and Analyst Confidence

Coca-Cola reported Q4 results on February 10 that beat on earnings but missed on revenue. EPS of $0.58 beat estimates of $.56, while revenue of $11.8 billion came in light. The real story was organic revenue growth of 5% and unit volume up 1%, showing demand holds despite consumer spending pressure.

UBS raised its price target from $82 to $87 on February 12, citing “stability of Coca-Cola’s core business fundamentals.” TD Cowen and BofA Securities both reaffirmed Buy ratings. Consensus now sits at $82.28, with 19 analysts rating it Buy or Strong Buy versus just five Holds.

The confidence stems from margin expansion potential and Zero Sugar momentum. Coca-Cola Zero Sugar grew 13% by volume, capturing consumers shifting from full-calorie drinks. Management guided to 4-5% organic revenue growth and 7-8% EPS growth for 2026, though that EPS outlook trails consensus.

New CEO’s Innovation Mandate

Henrique Braun takes over as CEO on March 31, and he’s already signaling change. Braun said current innovation efforts are “not meeting required standards” and committed to faster product launches and better consumer engagement.

The company is creating a Chief Digital Officer role and establishing regional excellence hubs to push decision-making closer to local markets. Braun’s billion-dollar brand strategy focuses on identifying emerging local brands and scaling them globally, similar to how Santa Clara dairy crossed the $1 billion threshold.

Product announcements included expanding the cherry-flavored line with a Cherry Float variant and introducing 7.5-ounce mini cans positioned as affordable options for convenience stores. These moves address consumer spending pressure without explicitly cutting prices.

Portfolio Pruning and Strategic Bets

Coca-Cola discontinued its 80-year-old Minute Maid frozen lineup and replaced Orange Cream Coke with the new Cherry Float. They’re clearing shelf space and marketing budget for higher-growth categories like Zero Sugar and sports drinks.

The company extended its NASCAR partnership, naming BODYARMOR the official sports drink of NASCAR. That’s significant given Coca-Cola took a $960 million impairment charge on BODYARMOR in Q4. Rather than retreating, they’re doubling down on sports nutrition with high-visibility marketing.

In China, Coca-Cola is investing during cultural moments like Spring Festival to deepen consumer connections. The company’s Mexican bottler Fomento Economico Mexicano (NYSE:FMX) issued $582 million in bonds this week, oversubscribed nearly 4x, showing capital markets remain confident in the distribution network.

The week revealed a company in transition. Outgoing CEO James Quincey delivered his final earnings call with steady results. Braun inherits a business generating $12.2 billion in free cash flow with a 63-year dividend streak, but one needing faster innovation to maintain premium valuations in a category where consumers are increasingly health-conscious and price-sensitive.