Is Coca-Cola European Partners (CCE) the Real K.O.?

Background:

The resilience and continued growth of American multinational corporations such as $KO (Coca Cola Co, US) KO: (%) this year are relying on the performance outside of the United States to make up for the decline in sales within the United States via Coca-Cola European Partners PLC $CCE CCE: (%). $CCE operates as a consumer goods subsidiary company which operates in 8 European countries including Belgium, France, Germany, Great Britain, Luxembourg, and Monaco which produces, distributes and markets nonalcoholic ready-to-drink beverages. $CCE has a market cap of $20.82 billion which has over 19,000 employees with $10.1 billion in sales/revenue which is 40% above last years sales/revenue (Business Wire, 2017). With a P/E Ratio of 27 shows that the company is relatively undervalued in an environment of a rising Euro and lower dollar.

Analysts:

The major analyst ratings of $CCE include 1. Research Team—Hold Rating (Updated: 8/20/2017), 2. CFRA-4 out of 5 star rating (updated 8/14/2017), 3. Ford Equity Research—Hold Rating (Updated: 8/17/2017), 4. The Street—Hold Rating (Updated 8/19/2017), and 5. Market Edge—Long (updated 8/17/2017).

Earnings Results:

Second-quarter diluted earnings per share were EUR0.61 on a reported basis or EUR0.67 on a comparable basis. Second-quarter 2017 reported revenue was EUR3.1 billion which expanded the scope of the company to include Germany, Iberia, and Iceland beating past revenue second-quarter 2017 versus prior year by over 40%.

 

Price Targets:

 

Target 1: $47

Target 2: $49.50

Target 3: $52.50

Long Term 4th Target: $54.50

Stop: $42

Technical Analysis:

On the 1 year daily chart the chart indicates an identifiable V-shaped rally in the chart which has propelled the stock from lows of $30.55 in December 2016 to recent highs of $44.75 in August 2017. The chart above shows that $CCE has risen through the bullish upward rising channel holding above the support bottom trendline which provides the path towards new highs in 2017-2018.

 

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