Coca-Cola Should ‘Continue to Outperform’ Amid Tariff Uncertainty, JPM Says

Coca-Cola (KO) is well-positioned amid continuing uncertainty in the market over the Trump administration’s tariffs, JPMorgan analysts said in a Monday note.

The analysts lifted their price target to $78 from $74 previously, keeping their “overweight” rating in a note previewing the soda maker’s first-quarter results, which are set to be released on April 29. The new price target brings JPMorgan analysts closer to the analyst consensus of $78.58 compiled by Visible Alpha, as they are among 11 other analysts with a “buy” rating, while just one has a “hold” rating on the stock.

“While KO is not immune to tariffs and macro headwinds, it is a relatively more defensive stock that will likely deliver among the highest [organic sales growth] in our coverage universe in 2025,” the JPMorgan analysts wrote.

Analysts See ‘Moderating Consumption Environment’ in US

They lowered their estimates for Coca-Cola’s first-quarter and full-year earnings and sales growth due to a “moderating consumption environment in the U.S.,” which they expect to be partially offset by a softening dollar.

The company has relatively limited exposure risk to tariffs, as the analysts said Coca-Cola’s largest risks are likely imported fruit juice and aluminum. They said Coca-Cola’s management “doesn’t see a potential impact” from possible aluminum inflation that could “derail its outlook.”

Noting the consumer staple market will be “highly dependent on the macro and tariff situation,” the analysts said that “if the current environment continues, we believe KO will continue to outperform peers and the broader market.”

Coca-Cola shares were down less than 1% to $72.77 at Monday’s close amid a broader market sell-off. They have gained 16% since the start of the year.