Coca-Cola (KO) is seeing broad-based top-line strength across geographies, witnessing growth across all operating units and nearly all beverage categories in Q2, RBC Capital Markets said in a Wednesday research note.
Top contributors to the company's Q2 performance were India, China, the US, and Brazil, with EMEA gaining share across every operating unit, and Latin America delivering balanced top-line growth with share gains in Brazil and Mexico, RBC said.
While the FIFA World Cup campaign represented Coca-Cola's most scaled and integrated global marketing activation to date, aiding in the company's Q2 volume performance, management has emphasized that the quarterly results reflected capabilities that were already in place, RBC noted.
RBC raised its fiscal 2026 estimates for organic sales growth and earnings per share to 5% and $3.30, from 4.3% and $3.26, previously. For fiscal 2027, RBC now expects organic sales growth and EPS of 4.9% and $3.52 from 4.8% and $3.46 previously.
RBC lifted its price target on the company's stock to $96 from $87 and reiterated its outperform rating.
Price: 89.75, Change: +1.48, Percent Change: +1.68
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