By Dhirendra Tripathi

Investing.com – Coca-Cola stock (NYSE:) rose 2% on Tuesday after Guggenheim upgraded its target price to $66.

The new target is 9% than the $60.47 touched by the stock in the session that’s underway.

Laurent Grandet, analyst at Laurent Capital had set $61 as a goal for the stock in an earlier report.

Grandet stated that the 2021 period was one of transition for Grandet’s company. The company should expect a stronger 2022. Grandet points out that emerging markets are a good place to grow, even though they have low vaccination rates. He argues the company’s on-premise sales are recovering faster than expected and that restructuring and portfolio rationalization have led to a more focused and agile organization. The analyst believes this will increase the gross margins.

After the company’s relative underperformance to PepsiCo (NASDAQ:) and the consumer staples-focused XLP Index (NYSE:), Grandet finds Coa-Cola’s valuations compelling. 

Coca-Cola revised its outlook in October and raised its target for adjusted organic revenue growth to 13.5%, moving it from 13%.

According to the company, its adjusted annual profit per share will rise by 16% compared to a previous forecast that called for an increase of 14% at the center.

In the three-month period ending Oct. 1, price increases were successfully implemented by the company and strong consumer demand was experienced for soda and other beverages. As the economy reopened, revenue soared 16% to $11.04 billion. People started to go to theatres and restaurants. Conscious about the potential health dangers of the pandemic and their desire to drink water, juices, and bottled sodas from it, many consumers sought them out.

Volumes of unit cases rose 6% due to increased sales in Europe, Africa, West Asia and Latin America.