Deutsche Bank Raises CCE Estimates

Deutsche Bank is raising its Coca-Cola Enterprises, Inc. CCE 2011 EPS (from $1.87 to $1.95) based on a 1% increase to revenue growth and margin leverage, and rolling out a 2012 estimate of $2.12 (8.7% growth). “Our DCF value rises from $24 to $26/share, which slightly increases target multiple from 7.9x EBITDA to 8.2x on 2011E,” Deutsche Bank writes. “This is in line with CCE's historical average, but given our conservative view on European growth potential, as well as FX/COGS/margin volatility, we view it as a full multiple and would need to see better value (closer to $21) to get more positive on the stock.” Coca-Cola Enterprises currently trades at $25.74.