) to buy from hold.
Analyst Christina McGlone says her sources suggest that selected Mexican bottlers are using high fructose corn syrup (HFCS). She notes a consolidated and rational industry is a positive for long-term profits in U.S. business and growth prospects in South America and Asia/Africa remain strong.
McGlone raises her $3.07 2005 earnings per share estimate to $3.12. She maintains her $3.74 2006 earnings per share estimate, but says it could prove low.
She notes the stock is at 17.7 times p-e on her 2005 estimate, 11.1 times EBIT, and 7.6 times EBITDA. She raises her $59 target to $62.