Market News

Coca-Cola Purchases Remaining Stake in BODYARMOR for $5.6B

Beverage major The Coca-Cola Company (KO) recently revealed that it has acquired the remaining 85% stake in sports performance and hydration beverages provider BODYARMOR for $5.6 billion in cash. The initial 15% was acquired in 2018.

Following the news, shares of the company declined marginally on Monday. The stock, however, pared its losses slightly to close at $56.25 in the extended trading session.

The complete acquisition of BODYARMOR will enable Coca-Cola to strengthen its sports drink offerings. Post the acquisition, the U.S. Coca-Cola bottling system will continue to distribute BODYARMOR.

The President of The Coca-Cola Company’s North America operating unit, Alfredo Rivera, said, “BODYARMOR has been a great addition to the system lineup over the last three years, and the company has driven continuous innovation in hydration and health-and-wellness products. We’re excited to bring BODYARMOR into The Coca-Cola Company and work with Mike Repole and his leadership team on the next stage of growth.” (See Coca-Colastock chart on TipRanks)

See Insiders’ Hot Stocks on TipRanks >>

Recently, Credit Suisse analyst Kaumil Gajrawala reiterated a Buy rating on the stock with a price target of $63, which implies upside potential of 12.2% from current levels.

According to the analyst, the opening up of lockdowns, manageable inflation pressure and comfortable operating leverage to increase growth act as value drivers for the company.

The Wall Street community is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on 4 Buys and 3 Holds. The average Coca-Cola price target of $61.29 implies that the stock has upside potential of 9.1% from current levels.

Coca-Cola scores a 9 out of 10 from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations. Shares have gained about 15.5% over the past year.

Related News:
Uber Unveils New Baby and Kids Vertical
Booz Allen Up 7.9% Thanks to Strong Q2 Earnings
XPeng Records Over 10,000 Deliveries in October

Tired of arriving late to the Big Returns Party?​
Most investors don’t have major gainers like TSLA or NVDA on their radar from the start.
The profusion of opinions on social media and financial blogs makes it impossible to distinguish between real growth potential and pure hype.
​​For the past decade, we have developed and perfected technology designed to help private investors, just like you, find the best opportunities, with the greatest upside potential, in any financial climate.​
Learn More