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.