Coca-Cola hits 52-week high after Jefferies upgrade
Analyst raises price target to $88 as bullish options activity surges 35% above average
Coca-Cola shares surged to a new 52-week high on Wednesday after Jefferies analysts boosted their price target on the beverage giant, while options traders bet on further upside with unusual call activity.
The stock climbed to $78.43, surpassing its previous high of $77.50 set earlier in the year, as Jefferies raised its price target from $84 to $88 while maintaining a Buy rating according to market data tracking. The stock last traded at $78.41, up 1.4% on the day, giving the company a market capitalization of $330.9 billion.
The options market reflected growing bullish sentiment, with 68,341 call contracts changing hands—35% above average daily volume—suggesting traders are positioning for additional gains through the first half of 2026. Call options, which give the right to buy shares at a predetermined price, are typically used by investors anticipating rising stock prices.
The analyst upgrade comes as Coca-Cola demonstrates strong fundamental performance. The company reported quarterly earnings growth of 30.1% year-over-year, with revenue increasing 5.1% over the same period, according to company financial data. Profit margins remain robust at 27.3%, with an operating margin of 32.4% and return on equity of 42.4%. Coca-Cola currently pays a dividend of $2.015 per share, yielding 2.67% at current prices.
The Jefferies target of $88 represents roughly 12% upside from current levels and is notably higher than the consensus analyst target of $79.28. Among 24 analysts covering the stock, 7 rate it a Strong Buy and 12 recommend Buy, with 5 maintaining Hold ratings and zero Sell recommendations, indicating broad optimism about the company's prospects.
In a separate regulatory development, Coca-Cola Chief Executive James Quincey filed an intention to exercise stock options worth $13.8 million. The filing indicated the transaction is part of a prearranged Rule 10b5-1 trading plan, which allows corporate insiders to establish predetermined trading schedules to avoid accusations of trading on non-public information. Such pre-planned sales are typically viewed as less concerning to investors than opportunistic insider selling.
Coca-Cola's performance stands out in the consumer staples sector, which has faced pressure from changing consumer preferences and economic uncertainty. The company's ability to maintain pricing power while continuing to innovate its product portfolio has helped it navigate challenging market conditions. With over 500 beverage brands across more than 200 countries, Coca-Cola's global distribution network remains a key competitive advantage.
Technical indicators suggest momentum may be building. The stock is trading above both its 50-day moving average of $71.02 and 200-day moving average of $70.01, a sign that the recent rally has broader support. The 52-week high breakthrough on elevated volume typically attracts additional institutional interest, as portfolio managers often add to positions when stocks demonstrate strength.
Looking ahead, investors will be watching for Coca-Cola's ability to sustain its earnings momentum through 2026, particularly as the company continues its strategic shift toward healthier beverage options and sustainable packaging initiatives. The beverage industry faces ongoing challenges from changing consumer preferences and regulatory pressures on sugary drinks, but Coca-Cola's scale and diversification have historically provided resilience through market cycles.