Coca-Cola (KO) Stock Forecast & Price Target

Coca-Cola's operational margins are forecasted to expand to approximately 32% by FY26, driven by strong execution and sustained pricing power, which enhance its market share and revenue growth. The company's anticipated long-term top-line growth rate of 5-6% is supported by durable pricing strategies and gains in emerging markets, alongside successful product initiatives like Fairlife in the U.S. Furthermore, Coca-Cola's recent restructuring aims to improve resource allocation, positioning the company for better market share performance and growth opportunities in both domestic and international markets.

Coca-Cola is facing significant international headwinds, particularly in markets such as China, the Middle East, parts of Africa, and India, resulting in pressures on volume growth. The company anticipates a foreign exchange headwind of 3-4% on the topline and expects modest growth in earnings per share (EPS) despite an increase in interest expenses year-over-year. Additionally, the current strength of the dollar and projected low single-digit revenue growth raise concerns about the company's financial performance moving forward, suggesting an overall unfavorable outlook.