Coca-Cola's (KO) organic growth guidance of 4% to 5% for 2026 is "well-above" its peers, Morgan Stanley analysts said in a Tuesday note.
Coca-Cola has "much stronger" pricing growth compared to its peers due to stronger pricing power, existing "solid" historical volume growth, growth contribution from its Fairlife brand, and consistent market share gains, analysts said.
Morgan Stanley said that Coca-Cola's 5% organic growth in 2025 was in line with estimates, but noted that investors focused on the company's underlying organic growth, which was up about 2% from a year earlier and missed expectations.
Analysts said that in its earnings call, Coca-Cola highlighted that volume trends improved intra-quarter in Q4, with the company's performance improving in December compared to November.
Morgan Stanley retained an overweight rating on the stock and increased its price target to $87 from $81.
Shares of the company were up 1% in recent Wednesday trading.
Price: 78.07, Change: +1.26, Percent Change: +1.63
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