Shares of The Coca-Cola Company soared 3.3% on Friday after the company announced that it had offered voluntary layoff packages to 4,000 workers across the US, Canada, and Puerto Rico in an effort to reorganize its business.
Coca-Cola (KO) revealed that it is realigning its business units to focus on fast-growing products. The food and beverage company will now reorganize its 17 operating units into nine business units across four geographical segments.
Coca-Cola stated that these “structural changes will result in the reallocation of some people and resources, which will include voluntary and involuntary reductions in employees.” The company intends to offer similar voluntary offerings in several other countries. (See KO stock analysis on TipRanks).
Last month on July 22, Morgan Stanley analyst Dara Mohsenian upgraded the stock to Buy from Hold and raised the price target to $54 (8.4% upside potential) from $52 citing the company’s “compelling valuation.” Mohsenian believes that the market has already accounted for short and long-term COVID-19 pandemic risk factors.
Currently, Wall Street analysts have a bullish outlook on the stock. The Strong Buy analyst consensus is based on 8 Buys and 1 Hold. With shares down about 10% year-to-date, the average price target of $54.67 implies upside potential of 9.7% to current levels.
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