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Coke just got another victory lap
Bank of America came out swinging in Coca-Cola’s corner after the company’s stronger-than-expected second quarter, lifting its price target to $100 from $95 and sticking with a Buy rating. In analyst-speak, that’s basically a standing ovation with a spreadsheet attached.
Why the Street is still thirsty
The bullish case is pretty simple: Coke isn’t just selling drinks, it’s selling consistency. BofA said the company’s consumption trends remain “best in class,” pointing to:
- 5% unit case volume growth in Q2
- stronger-than-expected sales
- better gross and operating margins
- continued confidence in mid-single-digit organic sales growth
That’s the kind of combo that makes a defensive consumer staples name feel a little less sleepy and a little more like a dependable cash machine.
Margin magic, plus a couple of side quests
The bank also nudged up its earnings estimates for fiscal 2026 through 2028 and sees more margin expansion ahead. It even waved off the recently disclosed cyber incident tied to parts of Fairlife’s operations, saying it shouldn’t be a material financial hit.
And then there’s the longer-term stuff: BofA thinks refranchising Coca-Cola Beverages Africa could help operating margins expand further. Translation: there are still knobs left for management to turn.
Big picture: when a soda company can keep growing volume, protecting margins, and making analysts raise targets, you don’t need a secret recipe to see why the stock keeps getting respect.