Credit Suisse Maintains Outperform On Coca-Cola After Earnings

Credit Suisse is out with a research report on Coca-Cola KO after it reported earnings earlier in the week. It has an Outperform rating and a $95 price target on shares. In a note to clients, Credit Suisse writes, "The power of Coke's internal cash generation + the power of cash generation at the independent bottlers is not properly understood. This report takes a detailed look at the global Coke System from the perspective of earnings, investment power, and returns. We argue that Coke's franchise system is responding to great marketing, upgraded services for the franchise bottlers, better innovation and stronger bottling relationships. This note offers financial evidence, analyzing the rising levels of cash at Coke and at the bottlers. We argue that there is an unprecedented traffic jam of healthy, cash rich and smart bottlers lining up in Atlanta asking for more territories and more opportunities to create value for KO holders. The off balance sheet story and the events they will trigger at Coke are not priced into the stock." Shares of KO closed at $69.34 yesterday.