Barclays raised KO’s price target citing higher 2026 EPS growth forecasts and a lower effective tax rate projection.
Barclays increased its price target for The Coca-Cola Company (NYSE:KO) to $89 from $85, maintaining an Overweight rating. The adjustment follows updated guidance from Coca-Cola’s Q1 2026 earnings call, where management raised its comparable EPS growth forecast to 8%-9% for 2026, up from a prior 7%-8% range.
The revised outlook reflects a lower projected effective tax rate of 19.9%, down one percentage point from earlier estimates. Coca-Cola also reaffirmed organic revenue growth of 4%-5% for 2026 but noted divestitures would create a four-point headwind to comparable net revenue and a one-point drag on EPS.
The pending sale of Coca-Cola Beverages Africa, expected to close in the second half of 2026, is factored into these projections. The company reported $3 in comparable EPS for 2025, serving as the baseline for the new guidance.