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Vivendi, Diageo Named As Potential Momentum Plays by JPMorgan

JPMorgan's list of European stocks likely to enter its momentum basket also includes Coca-Cola Europacific, Diageo and Porsche.
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JPMorgan Chase analysts have compiled a list of European stocks likely to enter their momentum basket, including the U.K.’s Coca-Cola Europacific Partners  (CCEP) - Get Coca-Cola Europacific Partners plc Report, France’s Vivendi  (VIVHY) , the U.K.’s Diageo  (DEO) - Get Diageo Plc Report and Germany’s Porsche  (POAHY) .

They see those stocks with potential to rise over the next year. “The typical definition of momentum … is a rising/falling 12-month trend in stock prices,” the analysts, led by Ayub Hanif, wrote in a commentary.

Beverage heavyweight Coke Europacific recently traded at $53.58, up 0.82%; media titan Vivendi at $12.59, down 0.28%; liquor stalwart Diageo at $202.72, unchanged; and auto icon Porsche at $10.10, down 3%.

As for Atlanta-based Coca-Cola KO, Morningstar analyst Erin Lash assigns it a wide moat and a $59 price target. It recently traded at $55.97, down 0.22%

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“Coca-Cola’s ubiquity and brand resonance in the non-alcoholic beverage category has been going strong for over 130 years, and we see structural dynamics that will ensure this persists,” she wrote Wednesday.

“Despite competing in a mature industry, the firm is adequately exposed, either directly or indirectly, to growth vectors such as premium water and energy drinks.

“Moreover, we believe Coke will be able to continue extracting incremental value growth from the carbonated soft drink market. The runway for growth is supported by ample room for share gains as well as geographic tailwinds.”

Coke said Monday that it has agreed to buy full control of sports drink company BodyArmor, paying $5.6 billion for the 85% it didn't own. The transaction values BodyArmor at about $8 billion, according to The Wall Street Journal.