Shares of The Coca-Cola Company (NYSE:$KO) are on track for a breakout. Not only has Wells Fargo (NYSE:$WFC) upgraded the stock to outperform, but analyst Bonnie Herzog said in a note to clients that the 125-year old supplier of sugary beverages may be transitioning into the world of alcoholic beverages.
According to Herzog, Coca-Cola could be making hints of this move at the company’s investor day on Thursday.
“We expect management will highlight a lot of this innovation,” Herzog said, adding that she expects the company will also “expand on CEO [James] Quincey’s recent commentary to: grow and incubate high-growth brands in the U.S. through its Venturing & Emerging Brands unit (VEB): build and nurture small brands internationally, similar to what it has achieved with success in the U.S. with VEB and through local partnerships; expand into other premium segments such as adult craft beverages.”
Wells Fargo has increased its 12-month price target on Coca-Cola from $45 to $51. At this time of writing, the company’s stock is up 1.37%.
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