KOF - Coca-Cola FEMSA attracts buy rating from BofA due to growth pricing trends

Bank of America upgraded Coca-Cola FEMSA ( NYSE: KOF ) to a Buy rating from Neutral on Monday.

Analyst Fernando Olvera and team said they are positive on KOF due to a solid volume growth across nations and the beverage company's flexibility to raise prices. Other positive factor include a product mix that is likely to be resilient and operating growth from potential distribution agreements with other spirit/beer, personal care and home product companies in Mexico, Brazil, Colombia, and Panama.

KOF is noted to be trading in line with global peers at 14X 2023 P/E 2023 estimates. However, when BofA adjusted the KOF multiple by the expected growth on EPS, the stock is said to trade at an attractive discount of 8%.

BofA assigned a new price objective of $157 from $137.

Shares of Coca-Cola FEMSA ( KOF ) moved up 0.90% premarket to $71.45 vs. the 52-week trading range of $50.21 to $72.99. .

The Seeking Alpha Quant Rating on Coca-Cola FEMSA ( KOF ) has already been flashing Strong Buy.

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