Latest news with #DaraMohsenian
Business Insider
2 days ago
- Business
- Business Insider
Coca-Cola Stock (KO) Could Benefit by Leaving Bottling Behind
Coca-Cola (KO) has slowly been moving away from bottling its own beverages, leaving that work to other companies that it sells syrup to. The company has been shifting toward this model for years now and has continued to do so with recent plant closures and layoffs. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter The latest Coca-Cola layoffs include 135 jobs that were cut in Napa County, Calif. The soda maker has closed this 30-year-old plant as part of its strategic change away from bottling its own products. When Coca-Cola's plan is complete, 80% of its bottling will be outsourced to other companies. It makes sense that Coca-Cola would seek to reduce its bottling and outsource the process. Doing so makes the company more asset-light and allows it to focus on its syrup margins of 68%. For comparison, the margins for bottling are only 12%. Offloading those less profitable operations could help boost KO stock. KO Stock Analyst Coverage Analysts largely agree with this mentality, with continued praise for KO stock. That includes updates from two analysts earlier this week: Five-star Morgan Stanley analyst Dara Mohsenian reiterated a Buy rating and an $81 price target, suggesting a 12.17% upside. RBC Capital analyst Nik Modi maintained a Buy rating and a $76 price target, implying a 5.25% upside. KO stock was up 0.64% as of Tuesday morning. That builds on its 16.88% increase year-to-date and its 12.93% rally over the past 12 months. Is KO Stock a Buy, Sell, or Hold? Turning to Wall Street, the analysts' consensus rating for Coca-Cola is Strong Buy, based on 15 Buy ratings and a single Hold rating over the past three months. With that comes an average KO stock price target of $79.50, representing a potential 10.08% upside for the shares.
Business Insider
3 days ago
- Business
- Business Insider
Will Coca-Cola (KO) Expand Its Market Dominance With the Return of a Favorite Flavor?
Coca-Cola (KO) is reportedly planning to bring back a fan-favorite flavor, as it looks to expand its dominance of the U.S. soda market. New reports suggest that the beverage company will return Diet Cherry Coke to store shelves. Confident Investing Starts Here: The reports don't claim when this return will happen, but do note that Diet Cherry Coke will only be around for a limited time. Leaks show a retro-inspired can and packaging for the promotion. Coca-Cola fans have called on the company to revive Diet Cherry Coke after it was discontinued five years ago. The company has instead focused on its Coke Zero Sugar line of drinks, but sales of those still fall behind their Diet Coke variants. With that in mind, it makes sense that Coca-Cola would bring back a classic flavor to meet the demand for its diet drinks. Coca-Cola Stock Analyst Coverage In related news, there's new analyst coverage of KO stock that will please shareholders. Five-star Morgan Stanley analyst Dara Mohsenian reiterated a Buy rating and $81 price target for Coca-Cola stock, implying a 13.3% upside for the shares. KO stock was also up 0.28% as of Monday afternoon. While not a major increase, baby steps to giant strides have resulted in a 15.78% rise year-to-date. This has resulted in the stock outperforming the major indices even in light of inflation, tariffs, and other economic headwinds. Is Coca-Cola Stock a Buy, Sell, or Hold? Turning to Wall Street, the analysts' consensus rating for Coca-Cola is Strong Buy, based on 14 Buy and one Hold rating over the past three months. With that comes an average KO stock price target of $79.50, representing a potential 11.09% upside for the shares.
Yahoo
08-02-2025
- Business
- Yahoo
Why e.l.f. Beauty (ELF) Shares Are Sliding Today
Shares of cosmetics company e.l.f. Beauty (NYSE:ELF) fell 27.4% in the pre-market session after the company reported disappointing fourth-quarter results. Its EPS and EBITDA missed. Due to weak demand trends observed earlier in the year, it lowered its full-year revenue, EPS, and EBITDA guidance, sending shares lower. On the other hand, e.l.f. Beauty blew past analysts' revenue expectations this quarter, but markets are forward looking, and may likely raise concerns about the revised growth forecast. Overall, this was a weak quarter. Following the results, Morgan Stanley downgraded the stock from Buy to Hold adding "We are downgrading ELF to Equal-weight post Q3 results last night, which were overshadowed by ELF lowering implied Q4 guidance significantly, confirming January US scanner data weakness.". The shares closed the day at $71.13, down 19.7% from previous close. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy e.l.f. Beauty? Access our full analysis report here, it's free. e.l.f. Beauty's shares are extremely volatile and have had 45 moves greater than 5% over the last year. But moves this big are rare even for e.l.f. Beauty and indicate this news significantly impacted the market's perception of the business. The previous big move we wrote about was 17 days ago when the stock dropped 5.9% on the news that research by Morgan Stanley analyst Dara Mohsenian revealed weak sales trends for the company (ELF). The research revealed that U.S. scanner sales growth "slowed to 5.5% year over year in the last two weeks, including Amazon first party, and were down 1.9% year over year in the last week." The analyst blamed the weakness partly "on the timing of the Martin Luther King Jr. Day and the LA wildfires." e.l.f. Beauty is down 42.2% since the beginning of the year, and at $71.07 per share, it is trading 67.4% below its 52-week high of $218 from June 2024. Investors who bought $1,000 worth of e.l.f. Beauty's shares 5 years ago would now be looking at an investment worth $3,748. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
