Fintel reports that on January 8, 2025, TD Cowen upgraded their outlook for Coca-Cola (NYSE:KO) from Hold to Buy. Analyst Price Forecast Suggests 23.79% Upside As of December 22, 2024, the average one-year price target for Coca-Cola is $75.

Companies that make shareholders wealthy must be efficient and profitable, and Coca-Cola meets both criteria. In a given year, the company converts roughly 20% to 30% of its sales into free cash flow and earns a solid 15% return on invested capital. In other words, good things happen when Coca-Cola invests in the business.

Historically, Coca-Cola KO and PepsiCo PEP have been popular stocks among hedge funds and institutional investors. Speaking to the credibility of Coca-Cola and Pepsi stock, both are owned by renowned institutional investors such as Vanguard Group and BlackRock BLK.