Checking In With KO: Visibility On Incremental Growth Drivers

研报英文原文证据摘录

Checking In With KO: Visibility On Incremental Growth Drivers

C O M PA N Y N O T E

M a y 1 9 , 2 0 2 6

Coca-Cola Company (KO) Overweight

CONCLUSION PRICE: US$81.20

So-called 'dirty sodas' are not the passing fad we had thought they were, and KO now TARGET: US$88.00

looks well-positioned to capitalize on this in foodservice with mixology equipment that ~25.0x PE multiple to our 2027E EPS of $3.50.

can significantly increase choices for consumers while minimizing increased operator We expect KO to deliver +5-6% organic sales

complexity. Consumers (especially younger consumers) increasingly seek variety in flavors growth and +7-8% EPS growth in 2026-28.

and experiences, and KO's just-launched machine greatly facilitates this - also helped

Michael S. Laveryby using consumer insight data from its 11M of daily Freestyle machine pours. We also Sr. Research Analyst, Piper Sandler & Co.

were able to sample its new BodyArmor Fit, launching in June, with 60mg of caffeine and 212 284-9511, michael.lavery@psc.com

290mg of electrolytes. We believe this could be a very compelling consumer proposition, Luke Maloney

addressing white space where demand for dual functionality (energy and hydration) does Research Analyst, Piper Sandler & Co.

not yet seem to be well addressed. It is hard to quantify potential upside from either new 212 284-9358, luke.maloney@psc.com

growth lever, but we have increased conviction in KO's execution. Reiterate OW. Changes Previous Current

Rating — Overweight

• Dirty sodas: Younger consumers can't get enough of personalized beverages. Price Tgt — US$88.00

Dirty sodas were clearly hot at the National Restaurant Association show we recently FY26E EPS — US$3.25

attended and highly visible, with KO sampling new, blended drink offerings.