UBS has reaffirmed its Buy recommendation on Coca-Cola (NYSE:KO) and kept an $82.00 price target as the beverage company prepares to release fourth-quarter results on February 10. The stock was trading at $76.84 at the time of UBS's note, reflecting a 22.42% gain over the past year and a recent move past its 52-week high. InvestingPro data cited by UBS shows Coca-Cola carries a "GOOD" overall financial health score of 2.92.
In his note, UBS analyst Peter Grom projects fourth-quarter earnings per share of $0.56, narrowly below the Visible Alpha consensus of $0.57. Despite the slight miss versus consensus, Grom continues to expect "another quarter of +MSD organic growth," and describes initial company guidance as pointing to "another on-algorithm year ahead."
The firm highlighted Coca-Cola's consistency as a distinguishing feature, calling such steady performance "a rarity across our coverage universe." That steadiness is reflected in the company's low five-year beta of 0.39. InvestingPro further notes that the stock "generally trades with low price volatility," a point the research service lists among several ProTips aimed at investors seeking additional perspective.
UBS also addressed investor concerns around valuation. Coca-Cola is trading at a premium of over 20% compared with large-cap multinational peers, well above its five-year historical average premium that the note places in the high single digits. The shares currently carry a price-to-earnings ratio of 25.47, while the PEG ratio sits at 0.98. The company also yields 2.71% in dividends, offering income in addition to prospective capital gains.
Despite the relative premium, UBS judges that "the risk/reward skews to the upside," pointing to what it describes as a "clear path to strong +MSD top line/+HSD EPS growth." InvestingPro's Fair Value assessment suggests the stock appears slightly overvalued at current levels, though analyst targets indicate room for additional upside. The bank's deeper analysis of Coca-Cola is available in the firm's Pro Research Report covering the company's financials and outlook.
Several corporate and industry developments were also noted. Coca-Cola announced a slate of leadership changes alongside the rating, including the appointment of Henrique Braun as CEO effective March 31, 2026. Manolo Arroyo will lead Customer and Commercial Leadership, and Sedef Salingan Sahin has been named Chief Digital Officer.
In consumer-product linkages, UBS noted that BellRing Brands has benefited from comments by Coca-Cola's CEO, James Quincey, highlighting increasing demand for protein products. BellRing, which owns Premier Protein and Dymatize, is cited as a direct beneficiary of that trend.
Broader policy and market items were also referenced. The Trump administration is set to recommend that Americans limit sugar intake to 10 grams per meal in upcoming dietary guidelines, placing emphasis on reducing added sugars, particularly for children, and advising avoidance of highly processed foods. Separately, Luckin Coffee is reportedly considering a bid for Nestle's Blue Bottle Coffee as part of a strategy to expand in the premium coffee segment, backed by Centurium Capital.
UBS's stance combines appreciation for Coca-Cola's predictable top-line trajectory and low volatility with acknowledgement of valuation pressures and other market forces that investors are weighing ahead of the company's quarterly report.