BofA Notes Coca-Cola HBC's 'Compelling' Growth Potential in Egypt; Price Objective Up
BofA Global Research raised its price objective for Coca-Cola HBC (CCH.L, CCKC.F) as analysts took note of the company's "compelling" growth potential in Egypt following an investor event in Cairo. "The successful integration and deployment of capabilities in Egypt provides a compelling playbook for [Coca-Cola Beverages Africa]. Management has been preparing extensively ahead of assuming control. The initial focus in the first twelve months will likely be on upgrading capabilities (particularly in sales execution and RGM), while optimizing the route-to-market. Management has suggested it will update the group's mid-term guidance, aſter completion. We expect CCH to deliver c+HSD sales, adding 60-80bps to CCH's top-line," analysts said in a Thursday note. Deal closing is also expected to further boost the company's strong growth momentum, with BofA flagging a potential for "slight" further rerating. "[Price objective] increased to 5,550p, reflecting a higher c19x target PE (vs prior 5,000p, c17.5x), justified by staple rerating and a higher assumed premium vs staples (10% vs prior "in line")," analysts wrote.
BofA Global Research raised its price objective for Coca-Cola HBC (CCH.L, CCKC.F) as analysts took note of the company's "compelling" growth potential in Egypt following an investor event in Cairo. "The successful integration and deployment of capabilities in Egypt provides a compelling playbook for [Coca-Cola Beverages Africa].
Management has been preparing extensively ahead of assuming control.
The initial focus in the first twelve months will likely be on upgrading capabilities (particularly in sales execution and RGM), while optimizing the route-to-market.
Management has suggested it will update the group's mid-term guidance, aſter completion.
We expect CCH to deliver c+HSD sales, adding 60-80bps to CCH's top-line," analysts said in a Thursday note.
Deal closing is also expected to further boost the company's strong growth momentum, with BofA flagging a potential for "slight" further rerating. "[Price objective] increased to 5,550p, reflecting a higher c19x target PE (vs prior 5,000p, c17.5x), justified by staple rerating and a higher assumed premium vs staples (10% vs prior "in line")," analysts wrote.