Wide-Moat Coca-Cola Posts Strong Q4; Emerging Markets Remain Growth Priority; Shares Fairly Valued

Wide-moat Coca-Cola posted better-than-expected organic revenue growth (15% versus our 12% forecast) in the fourth quarter that reaffirmed our view that the firm is poised to drive sales expansion through digital campaigns and a sharp focus on emerging markets (20% of sales). Adjusted EPS of $0.45 was a touch shy of our $0.47 estimate due to higher interest expenses from the floating rate debt. We are maintaining our $58 fair value estimate after incorporating the latest results in our valuation and view the shares as fairly valued.