NEW YORK (TheStreet) -- Coca-Cola (KO) shares are down 0.78% to $40.26 in trading on Tuesday after the global beverage maker had its price target lowered to $40 from $42 by analysts at Jefferies before the opening bell today.
The firm maintained its "hold" rating on the company's stock despite the downgraded outlook.
The decreased price target comes following the company's after-hours announcement yesterday that it expects to see 2015 earnings growth in line with this year's growth but short of its previous expectations. The company expects to see earnings per share growth between 4%-5% in 2015; it had previously said that it expects to see growth in the high single digits.
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"While fundamentals remain pressured & w/FX now more onerous, KO still expects c. 4%-5% FX neutral EPS growth in FY15.Though, we think Street FY15 EPS est. are likely to come down by c. 4% on FX, valuation remains expensive at 20.2x CY15e P/E, and we see little in the way of catalysts to get the stock moving higher," said analysts at Jefferies.
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 a few notable strengths, 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, reasonable valuation levels and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."