Street View: Coca-Cola's growth strategy to bubble up success amid economic ripples

Coca-Cola's KO.N quarterly revenue and profit beat estimates on Tuesday, thanks to price hikes and strong demand for its sodas, but the beverage giant warned U.S. tariffs could impact costs and hurt consumer sentiment going ahead.

Average recommendation of 28 brokerages is "buy", median PT is $78 - data compiled by LSEG

FIZZING WITH PROGRESS

RBC Capital Markets ("outperform", PT: $76) says beverage industry has more pricing flexibility due to advanced Revenue Growth Management (RGM) capabilities, like various pack sizes for affordability, and expects KO's financial performance to continue through 2025, despite volatile foreign exchange trends

Piper Sandler ("overweight", PT: $80) says KO has tailwinds from strong industry growth, competitive advantages for gaining market share, an "all-weather" approach for all beverage occasions, and marketing focused on consumers and customers

Jefferies ("buy", PT: $83) says KO's strategy is effective despite challenges, and the final payment for Fairlife (a dairy company, subsidiary of KO), was made in Q1, leading to higher free cash flow in 2026

"Coca-Cola continues to manage and adapt through the more challenging operating environment," adds Jefferies

Morningstar (fair value $66) says, "amid geopolitical and macro uncertainties, we view Coke as wise to enhance brand messaging with tailored content to connect with consumers"