Coca-Cola Stock Rating Downgrade

Analysts at CFRA Research have downgraded their rating of Coca-Cola (NYSE:KO) to “Hold” from “Buy”, citing a recent price appreciation in the company’s stock.

In a note to clients released on Wednesday, the analysts mentioned that after a “better-than-expected” second-quarter earnings release—where Coca-Cola exceeded financial targets and raised its full-year earnings per share guidance—the stock is now considered fairly valued.

Coca-Cola shares have risen over 21% this year, surpassing gains of competitor PepsiCo Inc (NASDAQ:PEP), according to the analysts. They also expressed concerns regarding the soft drink industry and the broader consumer staples sector, pointing out that price and volume growth is still under pressure from weak consumer spending.