Limited Evidence Coca-Cola is Feeling Any Pressure, Says Bernstein

By Sam Boughedda

In a note to investors on Tuesday, Bernstein analyst Callum Elliot struck a positive note after the firm hosted Coca-Cola (NYSE:KO) CEO James Quincey, at its Strategic Decisions Conference last week.

The analyst said the company was upbeat, and heading into the back end of the second quarter, they saw very limited evidence of any signs that the business is feeling the pressure yet.

"Another strong quarter on the cards in Q2 then? We also note that this positivity was aligned with the upbeat tone from other CPG companies such as CLX, EL, MDLZ and KHC."

The analyst added that JPMorgan CEO Jamie Dimon cut a "lonely figure" after his recent comments about the potential for an economic "hurricane."

"For all the commotion after WMT/TGT's 1Q commentary, it appears that pockets of weakness are still — for now at least — largely isolated exceptions," wrote Elliot. "We think we've seen a fundamental shift in KO's consumer engagement, with the Real Magic platform, leading to better engagement of younger consumers with Fortnite partnerships, fashion crossovers, and limited-time flavors."

Elliot concluded that they continue to see signs of positive business momentum and increasing evidence that the "turnaround which has been implemented by management over the past three years is gaining steam."

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