Citi Raising Price Target On Coke (KO)

Citi Investment Research is raising its price target on The Coca-Cola Company KO to $72 from $65, and is keeping its Buy rating on shares. In a note sent to clients, Citi writes, "Given our confidence in KO's ability to successfully integrate the North American CCE business, as well as the significant international growth opportunities that still exist for the company, we believe the stock should trade at a premium to its historical average relative P/E (of a roughly 25% premium to the S&P 500). As such, we assign a 35% target premium to KO's shares which, given the S&P's current roughly 14x multiple and our pro forma 2011 EPS estimate of $3.86, results in a target price of $72. As this represents roughly 12% ETR from current levels, we maintain our Buy (1L) rating on the stock." Shares of KO gained 36 cents on Friday to close at $65.70.