Nomura Securities Downgrades Coca-Cola Enterprises (CCE) to Reduce

Nomura Securities downgraded Coca-Cola Enterprises (NYSE: CCE) from Neutral to Reduce with a price target of $41.00 (from $44.50) saying risks now appear on the downside.

Analyst Ian Shackleton said, "Potential Coke strategies are likely negative for CCE. Although CCE has protection on concentrate costs through 2015, the recent cost increases for Coca-Cola Hellenic signal a more aggressive stance by the brand owner. Although the economic outlook for CCE’s key markets has improved, we are sceptical about it returning to its long-term model; 1Q results raised uncertainty about the ability to achieve both volume and price growth. A one-year forward PER of over 15x (vs 13x a year ago and under 11x in 2011) represents a discount to the consumer average, but we see some risk of this eroding if current trading does not show any significant improvement."

The firm moved FY14E EPS from $2.87 to $2.89; FY15E EPS from $3.22 to $3.23

For an analyst ratings summary and ratings history on Coca-Cola Enterprises click here. For more ratings news on Coca-Cola Enterprises click here.

Shares of Coca-Cola Enterprises closed at $45.97 yesterday.

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