Analysts at Citi hailed Coca Cola HBC’s first half numbers, hiking their target price for the shares in the process.
But the “limited” visibility on 2023 led them to keep their recommendation for the shares at ‘neutral’.
The strong momentum reported in the company’s three divisions was “impressive”, vindicating management’s confidence in CCH’s portfolio and business model, as well as its ability to withstand a more difficult macro backdrop, they said.
Furthermore, management’s new guidance left the shares on just 15.7 times’ the shares’ estimated price-to-earnings multiple for calendar year 2023.
“However, with visibility on 2023 still limited and the upgrade supported by the full consolidation of Multon, we maintain our Neutral rating but increase our target price to £22.0 (from £18.25).”