CCHGY - Coca-Cola Hellenic impresses Deutsche Bank with new organic sales targets

2023-05-26 09:46:35 ET

Deutsche Bank turned more constructive on Coca-Cola Hellenic ( OTCPK:CCHGY ) on Friday and increased its price target after taking in the bottling company's recent investor day event in Rome.

Analyst Mitch Collett said the presentation from Coca-Cola Hellenic Bottling Company ( OTCPK:CCHGY ) management provided strong evidence for the company's increased medium term guidance. Coca-Cola HBC indicated that the increase in the average annual organic revenue growth target to 6% to 7% was underpinned by the improved footprint, growth opportunities from both early stage and more mature markets, expansion into adjacencies and the deployment of digital tools. Management also indicated that it sees an abundance of opportunity which underlines the company's confidence. Deutsche Bank moved its longer-term revenue estimates towards the top of the company's new guidance range.

Deutsche Bank kept a Buy rating on Coca-Cola HBC ( OTCPK:CCHGY ) on the view it represents fizzy growth for frothless valuation. The firm boosted its price target on the stock to 2,950 pence from 2,750 pence. Shares rose 1.51% in London trading to 2,427 on Friday.

With its Q1 earnings report, Coca-Cola HBC ( OTCPK:CCHGY ) reported organic revenue growth of 22.2% excluding Russia and Ukraine. Organic revenue growth was seen across established, developing, and emerging markets against a soft comparable from a year ago. In Q2, Coca-Cola HBC ( OTCPK:CCHGY ) will relaunch Kinley, launch Jack Daniel's & Coca-Cola in selected markets, and further roll out Caffè Vergnano.

More on Coca-Cola HBC:

• Growth metrics on Coca-Cola HBC
• Valuation metrics on Coca-Cola HBC
• Momentum and relative strength index readings

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