BofA Lifts Coca-Cola (KO) Target as Outlook and Execution Remain Strong

The Coca-Cola Company (NYSE:KO) is included among the 14 Best Warren Buffett Dividend Stocks to Buy.

BofA Lifts Coca-Cola (KO) Target as Outlook and Execution Remain Strong

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On February 18, BofA analyst Peter Galbo raised his price recommendation on The Coca-Cola Company (NYSE:KO) to $88 from $85. The analyst reiterated a Buy rating on the stock. He said the company “sounded positive” and delivered “another bottler-friendly presentation” during the first day of the CAGNY conference, suggesting confidence in its outlook and execution.

Coca-Cola is also heading into a leadership change at a time when the industry is evolving. According to a February 10 Reuters report, incoming CEO Henrique Braun said the company needs to move faster on innovation. Beverage and packaged food companies are adjusting as consumers increasingly prefer low-sugar products, while the rise of weight-loss drugs is beginning to influence buying habits.”We need to get closer to the consumer and improve our speed to market,” Braun said on a post-earnings call. He is set to officially take over as CEO at the end of March.

The company’s near-term outlook reflects some of these pressures. Coca-Cola projected modest revenue growth for 2026 after missing fourth-quarter expectations. Demand for sodas declined in North America and Asia, weighing on overall performance. Coca-Cola expects organic revenue to grow 4% to 5% in 2026. That falls slightly short of estimates calling for 5.3% growth and comes after the company delivered 5% growth in 2025.

Pricing has been one of Coca-Cola’s key tools to manage higher costs. The company has raised beverage prices to offset inflation, but those increases have strained some consumers, particularly in the US, where shoppers are paying closer attention to everyday spending. To respond, Coca-Cola has introduced smaller and more affordable packaging. Last year, it launched mini 7.5-ounce single-serve cans priced under $2 in U.S. convenience stores. The goal was to appeal to more budget-conscious consumers and encourage more people to try the product.

The Coca-Cola Company (NYSE:KO) is a global beverage business that produces, markets, and sells non-alcoholic beverage concentrates, syrups, and finished drinks.

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Disclosure: None.