$CCEP

UBS Downgrades Coca-Cola Europacific Partners to Neutral From Buy, Adjusts PT to $107 From $109

Sector Update: Consumer Stocks Fall Premarket Tuesday

Consumer stocks were falling premarket Tuesday, with the State Street Consumer Staples Select Sector SPDR ETF (XLP) 0.4% lower and the State Street Consumer Discretionary Select Sector SPDR ETF (XLY) down 0.5%.McDonald's (MCD) shares were down 0.9% even after the company posted higher Q2 non-GAAP earnings and revenue.Coca-Cola Europacific Partners (CCEP) reported an increase in Q2 revenue. Coca-Cola Europacific Partners stock was down more than 2% pre-bell.Kimberly-Clark (KMB) reported higher Q2 adjusted earnings and revenue. Kimberly-Clark shares were 0.6% lower premarket.

Research Alert: CFRA Trims View On Shares Of Coca-cola Europacific Partners To Sell From Hold

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We lower our 12-month target price for Coca-Cola Europacific Partners (CCEP) to USD88 from USD109. This is based on a 2026 P/E of 17.5x, below its five-year historical average of 18.2x and the industry forward average of 18.2x. We believe our relative valuation appropriately reflects CCEP's waning growth potential (to a typical 3%-4% annual growth) and limited room for organic margin expansion under the current operating environment. We revise our 2026 EPS to EUR4.29 from EUR4.50 and 2027 EPS to EUR4.32 from EUR4.70. We think CCEP faces structural margin headwinds from heavy Coa-Cola branding dependence and incidence pricing constraints. While CCEP is seen mitigating this through mix shift toward Monster Energy, we expect volume to normalize through 2026. We believe management's 2026 cost guidance (c.1.5%) is optimistic given potentially underestimating the incidence rates and likely overestimated productivity benefits, especially in a cost-sensitive environment.

Sector Update: Consumer Stocks Mixed Pre-Bell Tuesday

Consumer stocks were mixed premarket Tuesday, with the State Street Consumer Staples Select Sector SPDR ETF (XLP) advancing 0.8% and the State Street Consumer Discretionary Select Sector SPDR ETF (XLY) retreating 0.7%.Coca-Cola Company (KO) shares were over 2% higher premarket after the company reported higher Q1 adjusted earnings and revenue.Polaris (PII) shares rose more than 2% after the company swung to Q1 adjusted earnings amid higher sales.Coca-Cola Europacific Partners (CCEP) stock was 3% higher after the company reported higher Q1 revenue.

Research Alert: Ccep Meets Q1 Estimates On Calendar Boost; Underlying Demand Growth Modest

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:CCEP reported Q1 2026 revenue of EUR5.00B, in line with consensus of EUR4.99B. FXN revenue growth of 9.4% was led by strong reported volume growth of 8.5%, though comparable volume growth of 1.6% after adjusting for six additional consumption days provides a more accurate demand picture. Revenue per unit case growth was moderate at 0.8%, with Europe posting 1.3% expansion while APS declined 0.3% due to the Suntory alcohol exit impact. The energy category delivered exceptional 21.3% volume growth from Monster brand distribution gains. However, we do not expect sustainable outperformance given potential consumer choice overload from excessive innovation. Management reaffirmed 2026 targets of 3-4% FXN revenue growth and ~7% comparable operating profit growth, which compare well with consensus estimates. However, we maintain a grounded view given the challenging consumer environment with an ongoing focus on value and affordability, which limits price growth potential and necessitates sustained promotions.