BofA Stays Bullish on Coca-Cola (KO), Sees Upside Despite Volume Pressures

The Coca-Cola Company (NYSE:KO) is one of the best defensive stocks to invest in according to analysts. Coca-Cola has so far seen a robust performance, with YTD share price gains of around 11%, outperforming the broader S&P 500 Index by nearly 5%. With that, the stock is also among the only two stocks on our list of best defensive stocks that have posted positive share price performance (as of August 1), the second one being STERIS plc, covered at number 5.

As the macroeconomic environment remains uncertain, quarterly results across corporations were under increased scrutiny, and Coca-Cola’s results were no exception. The company reported its Q2 2025 results on July 22, which were overall steady. While the company maintained its organic revenue growth guidance of 5% to 6% for the full year, it narrowed its adjusted EPS outlook to around 3% tightening it from the earlier 2% to 3% range.

Following the Q2 earnings report, an analyst from BofA maintained his Buy rating and raised the price target slightly from $77 to $78 on July 23. The update reflects better-than-expected Q2 2025 earnings per share, which surpassed the analyst’s expectations.

However, the analyst noted that despite the earnings beat, the stock underperformed on the day of the release, which he attributed mainly to the weaker-than-expected unit case volumes and broader market pressure. The analyst acknowledged these short-term challenges but pointed out that the volume comparisons will ease in the third quarter, which could help improve performance sequentially. Coca-Cola continues to show solid fundamentals, backed by over five decades of uninterrupted dividend growth and a well-established global brand.

The Coca-Cola Company (NYSE:KO) is one of the world’s largest beverage companies. Best known for its soft-drink, Coca-Cola, the company manufactures, markets, and distributes a wide range of beverages, including carbonated soft drinks, non-alcoholic beverage concentrates and syrups, as well as alcoholic beverages.

While we acknowledge the potential of KO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.