Coca-Cola European Partners plc Ordinary Shares (NYSE:CCE) have been upgraded from Buy to a Strong Buy rating by S&P Capital IQ analysts Jia Man Neoh and Agnese. However, he maintained his price target of $42 on the stock. The lead analyst pointed out that the stock price weakened close to ten percent in the last three-month period.
The analyst believes that the recent drop was due to the rotation sector out of yield plays apart from the planned implementation of a sugar tax in Great Britain and Spain. He thinks that the impact on Coca-Cola European Partners could be mitigated through reformulation of product before the implementation of taxes next year.
In his research note, the lead analyst told his clients that “Our investment thesis remains unchanged as we expect further efficiency gains and operational restructuring to drive earnings accretion over the next 2 years, and look for growth through strategic M&As in the longer-term.”
The stock traded down 0.69 percent at last check.