Research Market strategy
By Swissquote Analysts
Published on 20.04.2021
Morning news

Coca-Cola Posts Higher Quarterly Revenue

Topic of the day

Coca-Cola said it earned $2.25 billion, or 52 cents a share, down from 64 cents a share in the year-ago period. On a comparable basis, which excludes items such as currency, earnings per share were 55 cents on revenue that grew 5% to $9.02 billion. Analysts were looking for earnings per share of 50 cents on revenue of $8.68 billion. Organic revenue grew 6%. However, the company said it lost value share in the overall nonalcoholic ready-to-drink category as gains in both at-home and away-from-home channels were offset by ongoing pressure on the latter because of the Covid-19 pandemic. Away-from-home consumption is a major market for Coke, more so than rival PepsiCo (PEP). Coke announced it plans to conduct the IPO for Coca-Cola Beverages Africa, Africa's largest Coca-Cola bottler, in the next 18 months, with listings in Amsterdam and Johannesburg. Separately, the company announced plans to restructure its workforce in 2020. Above-expectations business figures moved the share price of Coca-Cola (+0.6%) only slightly.

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Swiss stocks

In line with neighboring stock exchanges, share prices in Switzerland trended lower at the start of the new week. In the absence of fresh impetus and shortly before the upcoming quarterly reporting season, investors are likely to have been dominated by a tendency to take profits or to wait and see. The SMI lost 0.5 percent to 11,210 points. Among the 20 SMI stocks, there were ten price losers and nine price winners; the Geberit share closed unchanged. A total of 36.52 (previously: 54.41) million shares were traded. The SMI was also depressed by the decline in the heavily weighted Nestle share. It lost 2.0 percent or 2.22 Swiss francs, bringing up the rear among the blue chips. However, the share traded ex dividend of 2.75 francs. Adjusted for the dividend, it therefore closed slightly up. On the losing side were also the two bank shares UBS (-1.3%) and Credit Suisse (-1.3%), although the banking index in Europe was friendly. On Credit Suisse, it was said that here the uncertainty is great before the business figures due on Thursday after the collapse of the hedge fund Archegos, which gave the bank losses worth billions.

International markets


European stocks are mostly lower, reversing earlier gains, as the absence of fresh major positive catalysts sees US stocks fall after ending last week at all-time highs. The Stoxx Europe 600 drops 0.1% to 442.18 points. The FTSE 100 drops 0.3%, the DAX declines 0.6% and the CAC-40 rises 0.2%. "A quieter start to the week has seen stock markets drift back on a lack of news," IG analyst Chris Beauchamp says. Investors will hope that US corporate earnings due later this week provide fresh support to equities given the market is currently trading on high valuations and expectations, thus at risk of a sudden decline, he says. In the banking sector, ABN Amro was up 2.3 percent. ABN Amro's settlement with the public prosecutor's office in money laundering offenses, which provides for a payment of 480 million euros, was received positively. Melrose Industries lost 4.6 percent after selling its stake Madison Industries for 2.62 billion pounds. As RBC noted, the sale price is below their estimate of 2.75 billion pounds. Juventus Football Club shares were up 17.9 percent. A positive factor in trading was that Juve is one of the twelve clubs to play in the planned Super League. Among the "founding members" is no club from Germany. As expected, UEFA criticized the plans, which were announced shortly before the planned increase in the Champions League.

United States

Initially still small losses have expanded somewhat at the start of the new week on Wall Street in the course. The Dow fell by 0.4 percent to 34,078 points, the S&P-500 lost in a similar magnitude and the technology-heavy Nasdaq indices were down 1.0 percent. The S&P-500 subindex of semiconductor stocks lost 2.6 percent, outpaced only by auto stocks, which lost an average of 2.8 percent. On the Nyse, there were 1,033 (Friday: 1,844) gainers and 2,305 (1,456) losers. Unchanged 107 (102) stocks went out of trading. Among others, Tesla (-3.4%) was responsible for the decline in the auto index. The share came under pressure after an accident with a presumably autonomous driving Tesla at the weekend two people were killed. Nikola (-6.3%) saw even more significant downside after Wedbush nearly halved its price target. The reason is concerns that the developer of hybrid trucks will not achieve its ambitious goals. Coinbase lost 2.6% after bitcoin and other cryptocurrencies crashed over the weekend. The shares of the operator of the largest U.S. trading platform for artificial currencies had started brilliantly on the stock market only the previous week. With a price jump of almost 10 percent, Harley Davidson reacted to the presentation of the first quarter figures, which were clearly better than expected in terms of sales and profits. The share price of Gamestop, the US computer games retailer that had become known at the beginning of the year for its severe stock market turbulence, rose by 6.3 percent. Tobacco stocks came under pressure with a Wall Street Journal report that the U.S. government is considering requiring tobacco companies to lower nicotine levels in their cigarettes. Altria lost 6.2 percent and Philip Morris 1.3 percent. British American Tobacco's U.S. depositary receipts were down 2.2 percent.


On the Asian stock exchanges, no clear trend prevails in late trading on Tuesday. Noticeable is the weakness in Tokyo, where the yen climbs to its highest level since early March. Burdened by the firm yen, the Nikkei-225 plunges more than 2 percent. Real estate and electronics stocks lead the table of losers. In China, on the other hand, little happens. The leading stock exchange in Shanghai is slightly firmer, the other core stock exchanges follow the inconsistent trend of the entire region. The HSI in Hong Kong is unchanged. The South Korean Kospi is friendly in the market after starting unchanged. Construction stocks support the market, because investors bet on a recovery of the private housing market.


U.S. Treasury yields remained at their recent, more clearly reduced level. The yield on the 10-year U.S. Treasury bond tightened one basis point to 1.597%.


Berenberg lowers L'Oreal target to EUR 305 (311) - Hold
Jefferies reduces target SMA Solar to EUR 56 (65) - Hold
Citi raises LVMH target to EUR 697 (627) - Buy

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