CCEP - Coca-Cola Europacific Partners lands two-notch upgrade from BofA

Bank of America hikes Coca-Cola Europacific Partners (CCEP) straight to a Buy rating after having the bottler slotted at Underperform. The firm says it sees top line and bottom line drivers for the company following the Amatil merger. Analyst Bryan Spillane: "In our view, key drivers for CCEP shares over the next two years are 1) Underlying revenue improvement across Europe and Pacific regions driven by improved front-line sales capabilities/intensity and a sharper product/package focus 2) near term demand recovery as consumer mobility mobilizes and higher margin away from home channels recover 3) High levels of earning visibility enabled by cost savings/synergies that equate to 18% of pro-forma FY19 operating profit 4) reducing debt leverage from 5.0x to sub 3.0x effectively shifts value from debt to equity 5) resumption of more robust return of cash to shareholders as leverage comes down." BofA assigns a price target of $75 to Coca-Cola

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Coca-Cola Europacific Partners lands two-notch upgrade from BofA