Coca-Cola HBC AG (CCH:LN) Gets Neutral Rating From Citi With £27.50 Price Target
Citi has reaffirmed its Neutral rating on Coca-Cola HBC AG (CCH:LN) (OTC: CCHGY) shares with a consistent price target of £27.50. The firm anticipates strong third-quarter results for Coca-Cola HBC, thanks to its diverse geographic presence that shielded it from adverse weather conditions in European markets.
Coca-Cola HBC's operations in emerging markets, especially in Russia and Nigeria, are expected to drive strong growth, supported by favorable weather conditions. Citi has slightly raised its full-year 2024 estimates for the company's organic sales growth and organic earnings before interest and taxes.
Despite minor reductions in earnings per share due to foreign exchange market movements, Citi remains optimistic about Coca-Cola HBC's performance, noting a recent stock price pullback. However, with the company's share buyback program on hold and valuation premium compared to the beer sector, Citi does not anticipate significant outperformance.
In comparison, Citi prefers ABInBev over Coca-Cola HBC, as indicated in their analysis. Overall, the anticipated positive third-quarter results could lead to some upside for Coca-Cola HBC, but investors should consider the company's stock buyback program and valuation before making investment decisions.
Analysis:
- Citi reaffirms Neutral rating on Coca-Cola HBC AG (CCH:LN) shares with £27.50 price target.
- Strong growth expected in emerging markets like Russia and Nigeria.
- Minor adjustments to earnings per share due to foreign exchange market movements.
- Citi prefers ABInBev over Coca-Cola HBC.
- Investors should consider stock buyback program and valuation before investing.