Coca-Cola HBC Has a ‘Compelling Blend of Growth and Defensive Characteristics,’ Says Morgan Stanley

Morgan Stanley initiated coverage of Coca-Cola HBC (LON: CCH) with an Overweight rating and a 4,400p price target, implying significant upside from current levels. 

Analyst David Roux named the bottler of Coca-Cola products across Europe as a new top pick, citing its balance of growth and defensive qualities.

The bank described Coca-Cola HBC as offering a “compelling blend of growth and defensive characteristics,” with earnings forecasts being revised higher and expected to drive share gains. 

The endorsement adds fresh momentum to a stock that has already attracted bullish calls from other brokers this year.

In August, Deutsche Bank raised its price target to 4,300p from 3,950p while reiterating a Buy rating. Barclays also moved its target to 4,300p from 3,900p, keeping an Overweight stance. 

Earlier in July, Citi lifted its target to 4,000p from 3,800p, maintaining a Neutral rating but noting it expected management to raise organic EBIT growth guidance for 2025 to 9%-13% with first-half results.

Citi told investors at the time that it saw “no obvious negatives” ahead of the company’s first half results released on August 6. 

Meanwhile, wth the shares trading below recent analyst targets, Morgan Stanley believes Coca-Cola HBC offers investors a rare mix of stability and upside, positioning it as one of the firm’s preferred names in the European staples space.