1 Wall Street analyst thinks Coca-Cola stock price will be $67. Is it a purchase?

As of this writing, the stock of a typical beverage company is Coca Cola (watt hours -1.00%) It’s trading at nearly $59 per share. However, according to TheFly, city Analyst Filippo Falorni said Coca-Cola shares were headed to $67 a share, up about 13%.

With a stock price up 13% and a dividend yielding about 3%, investors can expect market-beating returns for Coca-Cola stock if Paloni is right. So should investors buy the stock now? Now, here’s what investors need to know first.

Buy Coca-Cola Stock good cause

Falorni raised his price target on Coca-Cola stock on December 13. However, this is the fifth time this year alone that he has offered a price target, according to TipRanks. Previous price targets were $68, $71, $74, and $65.

In short, Falorni routinely changes his price target on Coca-Cola stock even though the business fundamentally doesn’t change very often.

Don’t misunderstand. I am not singling out Falorni in the least. However, investors must understand that Wall Street is constantly adjusting its outlook for stocks upward and downward. Therefore, constantly reacting to change can be counterproductive for investors. Rather, investors should build their investment thesis around the fundamental principles of the business rather than analysts’ opinions of future stock prices.

Coca-Cola is one of the best examples of how scale gives it a competitive advantage and provides stability from year to year. The company is also enjoying double-digit organic growth in 2023, and management believes this growth will continue next year. Management also believes there are opportunities to increase profits.

These are the kinds of things that could cause Coca-Cola’s price per share to rise higher in the future. Investors should keep their views based on fundamentals like those mentioned above, rather than being derailed by the ever-changing opinions of Wall Street.