Berenberg Ups Target Price on Coca-Cola HBC Ahead of African Acquisition

Berenberg analysts have raised their target price for Coca-Cola HBC to 5,483p due to the upcoming acquisition of Coca-Cola Beverages Africa.

The deal is expected to strengthen CCH's long-term growth profile by providing access to a large and fast-growing consumer base in Africa.

Berenberg believes CCBA's core markets offer a significant demographic dividend, with working-age populations growing at more than twice the pace of CCH's existing footprint.

The German bank also notes that CCBA's operating margin is weak relative to peers and its own history, partly due to inflation and EM currency pressure.