CCEP

Coca-Cola Europacific Partners Plc

Consumer, Event Driven/Special Sit


Presented:01/13/2022
Price:$59.65
Cap:$27.20B
Current Price:$77.18
Cap:$35.53B

Presented

Date01/13/2022
Price$59.65
Market Cap$27.20B
Ent Value$41.42B
P/E Ratio37x
Book Value$17.09
Div Yield2.66%
Shares O/S455.95M
Ave Daily Vol1,007,212
Short IntN/A

Current

Price$77.18
Market Cap$35.53B
Coca-Cola Europacific Partners Plc engages in the distribution and sale of non-alcoholic ready to drink beverages. It operates through the following geographical segments: Iberia, Germany, Great Britain, France, Belgium/Luxembourg, Netherlands, Norway, Sweden, and Iceland. The company was founded on August 4, 2015 and is headquartered in Uxbridge, the United Kingdom.

Publicly traded companies mentioned herein: Coca-Cola Co/The (KO), Coca-Cola Europacific Partners PLC (CCEP)

Highlights

The presenter is long shares of Coca-Cola Europacific Partners PLC (CCEP), the largest bottler in the Coca-Cola system. It is the resulting entity from the rolling up of the bottlers in Europe and was finalized through the May 2016 merger of Coca-Cola Enterprises (CCE), Coca-Cola Iberian Partners (CCIP), and Coca-Cola Erfrischungsgetränke (CCEG). CCEP has historically traded in the 13x – 19x EPS range, and currently trades at the low end of that range on normalized earnings. Following the acquisition of Coca-Cola Amatil (Amatil), he views this as a merger integration story inside of a reopening play, creating an attractive risk/reward setup. Applying a 17x – 18x multiple to his €3.80 EPS projection, he sees a fair value of €65 – €68, which is equivalent to ~$75 and represents 27% upside with LDD% downside to the low-$50 range.

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Idea Discussion

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