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Coca-Cola's Earnings Could Come Under Pressure - UBS

Source: Reuters
13/08/2008

Aug 12 - Coca-Cola Co's earnings could come under pressure, UBS said, citing slowing U.S. fast-food industry trends, a stronger U.S. dollar, and macroeconomic challenges in the United States and mainland Europe.

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In a note to clients, UBS said it cut its price target on the stock to $67 from $70 and also reduced its 2008 earnings view on the company to $3.08 per share from $3.10.

It maintained a "buy" rating on the world's largest soft-drink maker.

The brokerage, however, said Coca-Cola should offset most of these challenges as it benefits from the Beijing Olympics, emerging markets and cost savings programs.

Shares of Coca-Cola were down about 2 percent at $54.33 in morning trade on the New York Stock Exchange.



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