NEW YORK (TheStreet) -- Coca-Cola (KO) reiterated that it intends to invest $8.2 billion over the next six years in Mexico, its second largest market by sales volume, despite a recent 12% tax levied on full-calorie sodas by the Mexican government.
Mexico issued the tax in January in an effort to curb the country's obesity problem. A third of Mexican children and two-thirds of adults are overweight.
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Meanwhile, Mexican bottlers have reported that sales have been negatively affected by the new tax, according to the Wall Street Journal.
Coca-Cola shares are down -0.4% to $41.97 in trading today.
TheStreet Ratings team rates COCA-COLA CO as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate COCA-COLA CO (KO) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its expanding profit margins, good cash flow from operations, reasonable valuation levels and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows: