Coke a Hold with Stronger Dollar
The Coca-Cola Company (KO - Analyst Report) has strong soft drink brands, leading market shares and generates solid cash flow. The company's new CEO, Muhtar Kent, will continue with Isdell's revitalization plan to deal with the challenges of continually increasing volume.
Despite global economic weakness, world-wide volume growth continues, driven by non-carbonated beverages and international markets, along with incremental marketing spending of $400 million annually.
However, as long as the dollar remains strong, sales and operating earnings growth will be constrained from currency translations. The Hold rating is maintained.
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| Market Summary | Feb 09, 2010 20:57 pm ET |

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