Deutsche Bank turned more constructive on Coca-Cola Europacific Partners Plc (NASDAQ: CCEP) as it pointed to dependent growth at a deep discount.
Analyst Mitch Collett and team said Coca-Cola Europacific Partners (CCEP) offers an attractive mix of dependable DM-driven sales growth powered by mix, synergy and reopening driven margin expansion and relative insulation from higher inputs and macro weakness.
They also highlighted CCEP’s sector-leading ESG performance and the “de-gearing” following the acquisition of Coca-Cola Amatil.
Looking ahead, Coca-Cola Europacific Partners (CCEP) is forecast to grow EPS at 11% from 2022 to 2024.
“Despite these attractions, CCEP trades at a 45% discount to European Staples, or 20% below its average discount to the sector at a time when its defensive characteristics may be more valuable than ever. CCEP has been the 8th best performing name we cover since the beginning of 2021 but we continue to see material upside potential. “
Deutsche Bank kept a Buy rating on CCEP and lifted its prioce target to $ 70 vs. the prior PT of $ 60 and the average analyst price target of $ 64.87.