The firm has a $47 price target on the London-based independent Coca-Cola bottler.
"While carbonated soft drinks ('CSD') consumption trends remain weak, we see fundamental upside from share gains, growth in stills, synergies and cost savings using considerable free cash flow in shareholder-friendly ways," the firm wrote in a note to investors.
As with the "old" company, sweeping cash to reduce debt, opportunistically repurchasing stock, paying a reasonable and growing dividend and partnering with Coca-Cola (KO) to fill strategic holes in the portfolio should drive value, Deutsche Bank said.
"In this low-rate, slow-growing environment, we see Coca-Cola European Partners (CCEP) essentially as a bond with a growing annuity that supports our Buy rating and $47 target," the firm added.
Ongoing declines in soft drink per capita consumption and even worse volume drops in carbonated soft drinks represent two-thirds of the company's volumes, Deutsche Bank said.
But the firm believes adept capital allocation and significant price and mix opportunity across the portfolio in response to changing consumer preferences are powerful value drivers.
Shares of Coca-Cola European Partners are sliding 1.52% to $38.90 in pre-market trading on Friday.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C+ on the stock.
The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its expanding profit margins and notable return on equity.
However, the team also finds weaknesses including feeble growth in the company's earnings per share, generally higher debt management risk and weak operating cash flow.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: CCE