(Coke story updated with Moody's latest report on Coca Cola and its global beverage industry outlook.)

NEW YORK ( TheStreet) -- Bull Case Presented by Morningstar's Philip Gorham: " Coca Cola's ( KO) distribution network extends to more than 200 countries worldwide, an infrastructure that would be extremely difficult and costly for new entrants to replicate."

Bear Case Presented by Morningstar's Philip Gorham "Coca Cola's revenues are relatively undiversified in comparison with those of rival PepsiCo ( PEP), whose snacks business has proven to be quite resilient during economic downturns."

J.P. Morgan Stock Rating: Overweight, with a $66 price target. "Coca Cola has been the worst performing name in our U.S. beverage universe, and the stock is no longer priced for near perfection, as it was in January. The stock has underperformed the group by 13% year-to-date and PepsiCo by 10% year to date. As the Coca-Cola Enterprises ( CCE) deal closes and developed markets improve, we would expect valuation to normalize."

In February, Coca-Cola Enterprises and Coca Cola entered a deal where Coca Cola would acquire Coca-Cola Enterprises' North American business in a substantially cashless transaction and the former would acquire the latter's bottling operations in Norway and Sweden for $822 million.

J.P. Morgan told clients in an investor note that Coca Cola had lost its premium to its peer group this year due to its surprise announcement to purchase Coca-Cola Enterprises, challenges in developed markets and increased risk from foreign exchange.

J.P. Morgan said volume comps in most developed markets should get easier in the back half of the year. This should help ease some of the pressure Coca Cola saw on its organic revenue growth in the first half of the fiscal year where there was a noticeable divergence in volume growth between emerging and developed countries.

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