Morgan Stanley Sees Potential Benefits of Management/Organizational Changes at The Coca-Cola Company

In a report published Friday, Morgan Stanley analyst Dara Mohsenian reiterated an Equal-Weight rating on

. In the report, Morgan Stanley noted, “KO announced several changes in its management/organizational structure...We believe this news is another step in an ultimate refranchising of the NA bottling business, which should be viewed favorably for Coke with incremental cost-cutting, and given a refranchising would unlock higher returns and bring able local bottling partners in to improve operations. We continue to expect incremental news early next year around an initial agreement with the five US bottlers with whom Coke has announced it is in talks, as well as incremental cost-cutting plans. However, Cahillane's departure is a loss, as we viewed him as a talented executive and one of a few potential heirs apparent to CEO Kent.” The Coca-Cola Company closed on Thursday at $39.21.