Why Coca-Cola Shares Are Gaining Favor for 2026

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Wall Street's focus is returning to Coca-Cola. Market strategists are naming the beverage titan a top pick for the coming year, while reports of a potential divestiture within its coffee operations are generating investor interest. The company appears to be steadfastly aligning its strategy toward profitability and efficiency, an approach that is resonating with the investment community.

The stock recently received significant endorsement from investment bank TD Cowen. On December 9, the firm's analysts reaffirmed their buy rating and designated Coca-Cola as their "Best Idea for 2026." They set a price target of $80 per share, indicating substantial upside potential from current levels.

This bullish outlook is supported by three key factors:
* Global Reach: Coca-Cola holds a stronger position in fast-growing emerging markets compared to many competitors more concentrated in their domestic regions.
* Franchise Model: Its established network of bottling partners allows for rapid scaling while minimizing capital risk.
* Growth Forecasts: For 2026, analysts project 5% organic revenue growth and an 8% rise in earnings per share, driven by pricing power and diminishing foreign exchange headwinds.

Strategic Shift: Evaluating a Costa Coffee Retail Exit

A major strategic development involves the potential sale of Costa Coffee's operational retail business in the United Kingdom. According to market reports, Coca-Cola is reviewing such a move, with investment firm Centurium Capital—a backer of Luckin Coffee—cited as a potential buyer.

This step would be a logical extension of the company's long-standing "asset-light" philosophy. Coca-Cola's core focus has traditionally been on concentrate production and brand marketing, with capital-intensive segments like bottling and retail often managed by partners. Although the company acquired Costa Coffee for $5.1 billion in 2018, exiting the direct operation of café locations could streamline the balance sheet and potentially improve margins and Return on Invested Capital (ROIC). The brand rights and the Ready-to-Drink (RTD) coffee business are expected to remain with Coca-Cola.

Operational Efficiency and Current Market Performance

Further evidence of the company's commitment to optimization is seen in the closure of its sole bottling plant in Hawaii, operated by partner Odom Corporation. After 65 years, production is ceasing there to create a more efficient supply chain—a small but telling piece of the broader cost-control picture.

Despite these positive developments, the share price has traded largely sideways year-to-date, showing a marginal decline of 0.05%. The stock is currently oscillating around its 50-day moving average near €60.52. For investors, it continues to serve as a defensive holding, not least due to its dividend yield of approximately 2.9%.

The market now awaits official confirmation regarding the potential Costa retail sale, which could trigger a fresh valuation of the equity. Concrete figures for the full 2025 fiscal year and the initial outlook for 2026 will be provided in the next quarterly report, scheduled for February 17, 2026.