JP Morgan Not Surprised by Coca-Cola's S-4 Filing

After yesterday's close, Coca-Cola Enterprises CCE "filed its S-4 for the sale of its NA business to" Coca-Cola Co. KO. J.P. Morgan stated that there was nothing of concern in the filing. While "pro forma EPS was slightly lower than we were anticipating due to a greater than expected interested expense...we think that does not include the benefit from cash flow in 2010 and the benefits from options exercise, so we are not concerned." CCE's EPS estimate for 2009 was $1.36, and J.P. Morgan expects the 2010 numbers to hover around the $1.40-1.45 range, "which assumed double-digit growth, offset by mid-single digit currency impact." 2012's numbers are likely to be strong, as CCE is planning on spending $1 billion to buy back stock. The analysts believe that CCE's pro forma balance sheet shows no major surprises, and as such the deal will continue as planned. They rate CCE as neutral, suggesting that "investors will wait on sidelines until the euro volatility subsides."