UBS Maintains Neutral Rating on Coca-Cola Europacific Partners
UBS has maintained its Neutral rating on Coca-Cola Europacific Partners (CCEP) with a price target of $107.00. The stock is currently trading at $100.50, which places it on the most overvalued watchlist according to InvestingPro's Fair Value estimate. Despite this, UBS forecasts third-quarter organic sales growth of 5.4%, surpassing consensus estimates of 4.4%. The firm expects continued volume growth in both Europe and the Asia Pacific region.
European consumer data for carbonated soft drinks showed improvement through mid-September, supported by favorable weather trends. In the Asia Pacific, UBS anticipates solid growth driven by Indonesia and the Philippines. 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 other recent news, Coca-Cola Europacific Partners reported strong financial results for the first half of 2026. The company achieved 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 on the company's future performance. UBS downgraded CCEP from Buy to Neutral, citing a 19% year-to-date rally in the share price 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.