Benzinga | Dec 13, 2021 07:46AM EST

JPMorgan Upgrades This Beverage Giant Citing Sales Momentum

* JPMorgan analyst Andrea Teixeira upgraded Coca-Cola Co (NYSE:KO) to Overweight from Neutral with a price target of $63, up from $59, implying an 11.96% upside.

* The analyst believes Coca-Cola's sales momentum will build into 2022, "fueled by reopening and pricing."

* Teixeira said the company's profitability is relatively less impacted by cost pressures given its asset-light model and its "strong" brand equity allows for low price elasticity.

* The analyst added that its valuation is compelling versus historical and peers, even considering the risk of a negative outcome from the tax dispute with the Internal Revenue Service.

* Price Action: KO shares are trading higher by 1.12% at $56.91 in premarket on the last check Monday.