Investing.com -- Analysts at CFRA Research have downgraded their rating of Coca-Cola (NYSE:KO) to "Hold" from "Buy," citing a recent appreciation in the price of the soft drink giant's stock.
In a note to clients released on Wednesday, the analysts said that after a "better-than-expected" second-quarter earnings release, which saw Coca-Cola beat financial targets and raise its full-year earnings per share guidance, "the stock is now fairly valued."
Shares in Coca-Cola have now risen by more than 21% so far this year, outpacing gains in shares of arch rival PepsiCo Inc (NASDAQ:PEP), the analysts noted.
Meanwhile, they flagged lingering concerns around soft drink companies and the broader consumer staples sector, arguing that price and volume growth is facing continued pressure from weak consumer spending.