What a Costco Recall Means for Coca-Cola Stock (KO)

Business Insider

2 days ago

A new recall has been issued for a Coca-Cola (KO) product sold in select Costco (COST) stores. This recall affects Topo Chico Mineral Water and was issued due to a possible Pseudomonas aeruginosa contamination.
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Pseudomonas aeruginosa occurs in natural environments, such as in water and soil. It isn't largely dangerous to healthy individuals. However, those with compromised immune systems might suffer negative effects from its presence in Topo Chico Mineral Water. This could include infections of the blood, lungs, urinary tract, skin, eyes, ears, and other parts of the body.
Items included in the Coca-Cola recall include 18-packs of 16.9-ounce Topo Chico Mineral Water with a lot code of #13A2541. These were sold at Costco stores in Texas and Louisiana from May 20, 2025, to May 29, 2025. Consumers will note that no other Topo Chico Mineral Water products are included in this recall. Those who have purchased affected products can return them to Costco for a refund.
How Does This Recall Affect KO Stock?
Considering the small size and low risk of the recall, Coca-Cola investors don't appear overly worried about it. The company's stock was up 0.59% as of Wednesday afternoon and has rallied 15.83% year-to-date. The shares have seen strong performance in 2025, despite ongoing inflation, increased interest rates, trade war updates, and new tariffs. These issues have weighed down stock markets this year.
Is Coca-Cola Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts' consensus rating for Coca-Cola is Moderate Buy, based on 15 Buy and one Hold rating over the past three months. With that comes an average KO stock price target of $79.33, representing a potential 79.33% upside for the shares.