Coca-Cola (KO) Stock Forecast & Price Target

Coca-Cola's recent performance demonstrates positive momentum, highlighted by a 7.5% growth in US measured retail sales and expanding operating margins projected to reach approximately 32% by FY26. The company's successful execution in gaining market share, enhanced pricing power, and strong results from higher-margin brands are contributing factors to its robust growth outlook. Additionally, structural changes within the organization are expected to improve resource allocation and expand market opportunities, positioning Coca-Cola for continued top- and bottom-line growth despite potential currency fluctuations.

Coca-Cola faces significant international headwinds, particularly in key markets such as China, the Middle East, and parts of Africa and India, which have negatively impacted volume sales. The company has revised its earnings per share (EPS) estimates downward for 2025 and 2026, anticipating a currency impact that could serve as a 3-4% headwind to revenues, combined with lower consumer spending among the lower-income demographic in the U.S. Furthermore, the adjusted projections indicate a negative trend, forecasting modest EPS growth while experiencing incremental interest expenses year over year, raising concerns about the company’s financial performance.