CCH a Play on Eastern Europe

Headquartered in Athens, Greece, Coca-Cola Hellenic Bottling Company S.A. (CCH) produces, markets, and distributes primarily products of The Coca-Cola Company in 28 countries, including Greece, Italy, Austria, Russia, Ukraine, Poland and Hungary, to name but a few.

Coca-Cola Hellenic Bottling Company enjoys an attractive geographic mix with 66% of revenues being derived from developing or emerging markets. In addition, the company's product mix is less dependent on CSDs (carbonated soft drinks) than other bottlers.

Since the company conducts business and reports financial results in Euros, much of the stock's performance is inversely correlated with US dollar's exchange rate with the Euro. However, as management has a sound business strategy and proven execution skills, the recent earnings weakness is providing a valuation-based buying opportunity.

Therefore, the stock is rated a Buy. The target price is based on a 14.5 P/E on trailing 12-month earnings; therefore, the target price is $28.00.

Read the full analyst report on CCH.

Read the full analyst report on CCH