Coca-Cola (KO) Stock Forecast & Price Target

Coca-Cola is projected to achieve an operating margin of approximately 32% by FY26, supported by strong organic growth and market share gains driven by effective execution and robust pricing strategies. The company's strategic restructuring is anticipated to enhance resource allocation, facilitating share gains and expansion into new markets, particularly in emerging economies where growth opportunities are significant. With a forecasted long-term topline growth of 5-6% and an expectation of strong performance both domestically and internationally, Coca-Cola is well-positioned to continue its upward momentum in the beverage industry.

Coca-Cola is facing several international headwinds that have adversely affected its volume growth, particularly in key markets like China, the Middle East, and parts of Africa, with additional challenges arising from weather conditions in India. Furthermore, as foreign exchange fluctuations are expected to negatively impact revenues by 3-4% in the upcoming fiscal year, the company's overall financial outlook remains constrained. Projections for fiscal year 2025 indicate only modest growth in earnings per share, alongside concerns that current earnings estimates may be overly optimistic given the anticipated long-term core top-line growth of just 1.3%.