Coca-Cola European Partners plc (CCEP) Gets a Hold Rating from Susquehanna

By Carrie Williams

Susquehanna analyst Pablo Zuanic reiterated a Hold rating on Coca-Cola European Partners plc (CCEPResearch Report) today and set a price target of $47. The company’s shares closed on Friday at $48.54, close to its 52-week high of $49.43.

Zuanic wrote:

“Britvic (Pepsi bottler in GB and France, two markets we estimate account for close to 45% of CCE’s earnings) reported results for its fiscal year ending September, which include two quarters of soda-tax effect in GB and one quarter in France. Net, as we have been noting, even ex the pass-through of soda taxes in GB and France, both companies have stepped up their net price realization in CSDs as the taxes went through; this is particularly the case in GB, and also, although to a lesser extent, in France. As a result, despite some elasticity, it could be argued that the soda taxes (stripping out the accounting effect) have been “accretive” to both the revenue and EBIT line for CCE and for Britvic. Still, we realize it is early days and a number of factors (hot summer weather; Britvic hurt by the CO2 shortages) constrain the ability to extrapolate; the competitive landscape could change.”

According to TipRanks.com, Zuanic is a 4-star analyst with an average return of 5.1% and a 47.6% success rate. Zuanic covers the Consumer Goods sector, focusing on stocks such as Constellation Brands Inc, Anheuser-Busch Inbev Sa, and Craft Brewers Alliance.

Coca-Cola European Partners plc has an analyst consensus of Moderate Buy, with a price target consensus of $49.

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Based on Coca-Cola European Partners plc’s latest earnings release for the quarter ending September 30, the company reported a quarterly net profit of $416 million. In comparison, last year the company had a net profit of $357 million.

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Coca-Cola European Partners Plc engages in the distribution and sale of ready-to-drink beverages. IT operates through the following brands: Coca-Cola, Diet Coke or Coca-Cola Light, Coke Zero, Coca-Cola Life, Fanta, and Sprite. It also offers energy drinks, waters, juices, sports drinks, and ready-to-drink teas.