UPDATE - Nomura Securities Initiates Coverage on Coca-Cola Enterprises (CCE)
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Price: $46.72 --0%
Rating Summary:
10 Buy, 10 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 12 | New: 5
Rating Summary:
10 Buy, 10 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 12 | New: 5
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UPDATE - Nomura Securities initiates coverage on Coca-Cola Enterprises (NYSE: CCE) with a Neutral.
Nomura analyst, Ian Shackleton, said, "The company is one of the largest bottlers in the Coca-Cola system with a leading position in all of its markets and we remain confident in its ability to generate organic EBIT growth of 6-8%. The balance sheet is in a healthy position (net debt/EBITDA of 1.7x as of 2010) while the company has committed to buying back $1bn of stock by early 2012, which would take net debt/EBITDA up to 1.9x. However, following the sale of the North American assets, the shares have performed strongly with valuation moving up to 13.7x 2011E versus peers such as CCH on 14.4x, CCA on 16.4x and Britvic on 9.9x, hence our Neutral rating. Despite this, we expect the shares to underperform over Q2 results (28 July), which we see as being disappointing, and so the stock may become more interesting following this potential negative catalyst."
Nomura analyst, Ian Shackleton, said, "The company is one of the largest bottlers in the Coca-Cola system with a leading position in all of its markets and we remain confident in its ability to generate organic EBIT growth of 6-8%. The balance sheet is in a healthy position (net debt/EBITDA of 1.7x as of 2010) while the company has committed to buying back $1bn of stock by early 2012, which would take net debt/EBITDA up to 1.9x. However, following the sale of the North American assets, the shares have performed strongly with valuation moving up to 13.7x 2011E versus peers such as CCH on 14.4x, CCA on 16.4x and Britvic on 9.9x, hence our Neutral rating. Despite this, we expect the shares to underperform over Q2 results (28 July), which we see as being disappointing, and so the stock may become more interesting following this potential negative catalyst."
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