Coca-Cola Stock Jumps 4.3% After Strong Q4—Can It Keep the Momentum in 2025?

Coca-Cola (KO) shares surged 4.3% on Tuesday, February 11, 2025, following the company's strong fourth-quarter and full-year 2024 results. The beverage giant reported a 4.2% increase in comparable net revenue to $11.40 billion, driven by a 9% rise in global prices and a 5% increase in concentrate sales. Adjusted profit of $0.55 per share also topped expectations. Can Coca-Cola maintain this momentum in 2025? Let's dive into the key factors contributing to the stock's recent performance and assess its long-term prospects.

Resilient demand for sparkling sodas: Volumes of sparkling soft drink brands such as Fanta and Sprite returned to growth in the quarter, rising 2%, after staying flat in the prior quarter. This resilience is likely to continue in the long term, given the enduring popularity of these brands and Coca-Cola's strong market position.

Higher prices and cost management: Global prices rose 9% in the quarter, following a 10% jump in the third quarter. This pricing power is sustainable, as Coca-Cola has been able to pass on higher input costs to consumers without significantly impacting demand. The company's effective cost management has also contributed to its strong operating margins.

Expansion in North America and emerging markets: Coca-Cola has expanded its portfolio in North America to include brands such as premium Fairlife milk and sparkling water Topo Chico. These diverse offerings have proven buoyant in the face of consumers cutting back on sugary drinks, indicating long-term demand structures. Additionally, the company is capturing demand in emerging markets such as India by catering to more local tastes and offering packages at different price points.



Analysts' price targets and ratings: The average analyst price target for Coca-Cola stock is $72.18, with a low estimate of $66 and a high estimate of $80. The average target predicts an increase of 6.76% from the current stock price of $67.61. Analysts' consensus rating for Coca-Cola stock is "Strong Buy," indicating a positive outlook for the company's future performance.

Looking ahead to 2025: Coca-Cola's strong Q4 performance and positive analyst sentiment suggest that the company is well-positioned to maintain its momentum in 2025. However, investors should remain vigilant for potential headwinds, such as geopolitical risks and currency fluctuations, which may impact the company's performance in the long term.

In conclusion, Coca-Cola's strong Q4 performance, driven by resilient demand for sparkling sodas, higher prices, and expansion in North America and emerging markets, has contributed to the stock's recent surge. With positive analyst sentiment and a strong outlook for 2025, Coca-Cola appears poised to maintain its momentum. However, investors should remain aware of potential long-term risks and monitor the company's progress closely.