UBS keeps Neutral rating on Coca-Cola Europacific Partners despite strong growth forecasts
UBS has maintained its Neutral rating on Coca-Cola Europacific Partners (CCEP) with a $107.00 price target. The stock is currently trading at $100.50, slightly above InvestingPro’s Fair Value estimate, which places it on the most overvalued watchlist. The firm expects third-quarter organic sales growth of 5.4%, surpassing consensus estimates of 4.4%. UBS anticipates continued volume growth momentum in both Europe and the Asia Pacific region, supported by favorable weather trends and solid growth in Indonesia and the Philippines.
In Europe, consumer data for carbonated soft drinks showed significant improvement through mid-September. In Asia Pacific, UBS forecasts strong performance driven by key markets. Australia is also expected to contribute to growth as it transitions from last year’s exit from the Suntory partnership. UBS suggests that CCEP could potentially raise its full-year organic revenue guidance to the top end of the current 3% to 4% range.
The firm expects no change to the company’s approximately 7% organic operating income guidance for the full year. According to InvestingPro Tips, CCEP trades at a low P/E relative to near-term earnings growth, with a PEG ratio of 0.60. The company is one of 1,400+ US equities covered by comprehensive Pro Research Reports.
In recent news, Coca-Cola Europacific Partners reported strong financial results for the first half of 2026, with revenue of EUR 10.7 billion, reflecting a 6.1% growth on a comparable, foreign exchange-neutral basis. Diluted earnings per share increased by 10.6% to €2.20. Despite these positive results, the market reacted cautiously to the company’s outlook for the remainder of the year. Analysts have offered mixed perspectives, with UBS downgrading CCEP from Buy to Neutral due to a 19% year-to-date rally and a valuation premium compared to European staples. Meanwhile, Bernstein SocGen Group raised its price target for the company from $102 to $106, maintaining a Market Perform rating due to solid first-half results.