Wall Street Analysts Are Neutral on Top Consumer Goods Picks

By Jason Carr

Analysts fell to the sidelines weighing in on Coca-Cola Enterprises (NYSE: CCE) and Cott Corp (NYSE: COT) with neutral ratings,indicating that the experts are neither bullish nor bearish on the stocks.

Coca-Cola Enterprises (NYSE: CCE)

Susquehanna analyst Pablo Zuanic reiterated a Hold rating on Coca-Cola Enterprises (NYSE: CCE) today and set a price target of $39. The company’s shares closed last Friday at $35.47, close to its 52-week low of $33.67.

According to TipRanks.com, Zuanic is a 1-star analyst with an average return of -0.9% and a 40.6% success rate. Zuanic covers the Consumer Goods sector, focusing on stocks such as Constellation Brands Inc, Anheuser-Busch Inbev Sa, and Mondelez International.

Currently, the analyst consensus on Coca-Cola Enterprises is Hold and the average price target is $43, representing a 21.2% upside.

In a report issued on November 11, UBS also reiterated a Hold rating on the stock with a $38 price target.
Cott Corp (NYSE: COT)

In a report issued on November 11, Kevin Grundy from Jefferies reiterated a Hold rating on Cott Corp (NYSE: COT), with a price target of $14. The company’s shares closed last Friday at $12.54.

Grundy observed:

“We are edging up our FY17-18 EBITDA est. by 1-2% post COT’s modestly better than expected 3Q results largely owed to less onerous declines than anticipated in the (still-challenged) legacy private label business. Cott is adeptly delivering, though the difficult retail environment (particularly the UK), integration risk from newly acquired businesses, and FX continue to place risk on the co.’s outlook, keeping us on the sidelines. Hold, PT to $14 based on SOTPs. COT delivers modest upside in 3Q: COT reported 3Q revs of $885M (+2% vs. Street) on org sales growth of -2.4% (vs. JEF -4.2%) with the water/coffee business relatively in-line, while declines in the legacy priv. label biz were not as onerous as our f-cast. GM % beat (35.0% vs. Street 34.1%), partially offset by higher SG&A (29.7% vs. Street 29.2%), driving a 2% EBITDA beat. While some transitory factors weighed on results (e.g. higher SG&A at DS from new customer adds), COT still managed to beat Street estimates. FCF guide moved higher in the range due to the timing of the closing of acquisitions: Cott reaffirmed its FCF guide of $125-135M (vs.”

According to TipRanks.com, Grundy is a 2-star analyst with an average return of -0.1% and a 46.9% success rate. Grundy covers the Consumer Goods sector, focusing on stocks such as Spectrum Brands Holdings, Estee Lauder Companies, and Edgewell Personal Care.

Cott Corp has an analyst consensus of Moderate Buy.