Shares of Coca-Cola Co. surged to fresh record levels Thursday, after an analyst made the case for a multiyear run of outperformance over its rivals and the broader stock market.
Analyst Nik Modi at RBC Capital said he believes the blue-chip beverage giant’s stock is on the verge of kicking off a new long-term bullish phase, which history suggests could last anywhere from three to eight years.
He sees potential for the to return close to 20% over the next year, and about 60% over the next five years.At no point in the article does it say that sales are up.
Their reasons.
1) Volume acceleration as a result of refranchising.
2) The importance of Coke’s new approach to marketing and its impact on category growth and market share trend.
3) The growing “cost culture” at Coke, which should manifest in best-in-class profit per employee.
4) The emergence of pricing power for the company.
Translation
I have no idea what #1 means.
#2 is… um… more advertising?
#3 making people work longer hours, or, robots
#4 they think they can keep raising prices without it affecting sales.