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Coca-Cola Stocks Forecast To Continue Reaching New Highs

Coca-Cola Stocks Forecast To Continue Reaching New Highs

Before Coca-Cola accelerated its growth strategy there was not much investor interest in the company’s stocks. However, the company recently acquired equity stakes in the coffee company Keurig Green Mountain and energy-drink producer Monster Beverage which provoked a huge amount of attention.

Coca-Cola Stocks Forecast To Continue Reaching New Highs

So far it has been an excellent year for Coca-Cola stocks and it seems as if the share price is set to continue rising.

The stock had been trading between $37 and $39 a share, but when the deals became public in May the price jumped to $40 a share. Furthermore, last week the stock hit a 52 week high of $42.57 a share and at the end of trading last week it closed at $41.12 a share.

This is relatively unusual as the shares of the acquirers in merger and acquisition deals usually slump.

It means that those who track Coca-Cola are positive about the equity acquisitions and expect the stock to continue climbing.

Coca-Cola acquired 16% of Keurig and 17% of Monster Beverage. Both of these companies are expanding into new markets and as such they are expected to expand Coca-Cola’s markets. The large equity stake suggest that Coca-Cola has faith in the companies’ strong growth potential and it is not unfeasible that Coca-Cola will end up acquiring one or both of the companies. If this proves correct then investors can be confident that Coca-Cola stocks will continue to rise.

OCA News Editor

Jenny McKinnley is OCA’s financial correspondent. After spending years on the trading floor in both NY and London, she offers insight from the inside out on world financial news and events.

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