Coca-Cola is the largest non-alcoholic beverage manufacturer and one of the most recognisable consumer brands in the world. The group's portfolio includes several products - with Coca-Cola, Fanta, and Sprite the most notable. In addition to soft drinks, it markets bottled water, fruit juice, sports drinks, as well as ready-to-drink teas and coffees.
The beverage giant continues to dominate the market with its industry leading distribution system that reaches more than 200 countries. This includes both company-owned and independently operated bottling partners, wholesalers, and retailers.
During a previous uptrend, the stock price formed a symmetrical triangle pattern (see the solid black converging trendlines on the main chart as well as the insert), which suggests a consolidation ahead of an imminent move higher.
The stock is trading above its 200-day simple moving average of ~$60.50 - this is a bullish indicator.
FNB has two ETNs, namely COETNQ (without currency exposure) and COETNC (with currency exposure) that can be used to replicate exposure to KO. These are both listed on the JSE.
Share Information
| Share code | KO |
|---|---|
| Industry | Food & Beverage |
| Market capatalisation (USD) | 268 billion |
| One year total return | 2.72% |
| Return year-to-date | -2.03% |
| Current price(USD) | 61.85 |
| 52 weeek high(USD) | 67.20 |
| 52 week low(USD) | 54.02 |
| Financial year end | December |
| Closing paragraph | The share price has come under pressure recently, however several technical indicators point to renewed upside support. |
Consensus Expectations (Bloomberg)
| FY22 | FY23E | FY24E | FY25E | |
|---|---|---|---|---|
| Headline Earnings per Share (USD) | 2.48 | 2.59 | 2.79 | 2.99 |
| Growth (%) | 4.60% | 7.63% | 7.16% | |
| Dividend Per Share (USD) | 1.76 | 1.83 | 1.91 | 1.99 |
| Growth (%) | 3.98% | 4.32% | 4.40% | |
| Forward PE (times) | 23.84 | 22.15 | 20.67 | |
| Forward Dividend Yield (%) | 2.96 | 3.09 | 3.22 | |
| Closing paragraph | Stable growth seen over the past few years is expected to continue over the medium term. | |||
Buy or Sell Rationale
Technical Analysis :
Long term fundamental view:
| Share Name and position | BDRY - BUY (Continue to hold) | XLK - BUY (Continue to hold) | AAPL - BUY (Continue to hold) |
|---|---|---|---|
| Entry | 9.05 | 139.66 | 153.71 |
| Current | 9.65 | 148.88 | 162.36 |
| Movement | 6.6% | 6.6% | 5.6% |
| Summary text |
The price is currently in an accumulation phase and testing its 200-day simple moving average.
Our profit target remains at $12 with a trailing stop-loss at $8.40. We plan to exit the position on 21 June 2023. |
The price is currently testing the upper range of a declining channel pattern. The ETF remains above its 200-day simple moving average.
Our profit target is set at $156 with a trailing stop-loss at $142.20. Exit the position around 24 May 2023. |
The stock price is currently retracing from the lower range of its linear regression channel pattern and remains above its 200-day simple moving average.
Our profit target is $170, and our trailing stop-loss is $153.35. Exit the position around 16 June 2023. |
| Share Name and position | ADBE - BUY (Continue to hold) | KR - BUY (Continue to hold) | CBOE - BUY (Continue to hold) |
|---|---|---|---|
| Entry | 373.40 | 46.91 | 127.18 |
| Current | 381.90 | 49.06 | 132.31 |
| Movement | 2.3% | 4.6% | 4.0% |
| Summary text |
Stock price symmetry remains attractive, and the counter remains above its 200-day simple moving average.
Our profit target is set at $440 with a trailing stop-loss at $355. Close the position on 28 June 2023. |
The price remains above key levels. The stock is trading above its 200-day simple moving average and is testing its 38.6% Fibonacci retracement level.
Our profit target remains at $52.00, with a trailing stop-loss of $46.75. We plan to exit the position on 7 June 2023. |
The defensive nature of the stock remains attractive. Upside momentum continues to support the bullish trend.
The profit target is $144, with a stop-loss of $126. Exit the trade by 2 June 2023. |
