2010 has been a solid year for Coca-Cola (NYSE:KO). The blue chip has risen roughly 15% year to date and is up 25% from its early-July low. Shares of the soft-drink titan are now trading around the $65 level, at their highest point since last millennium.
It’s times like this that try traders’ souls. Do you go with the trend or look for a pullback? Is Coke likely to continue its ride higher or take a breather?
Citigroup is in the bullish camp, recently upping its price target to $72 from $65 (and maintaining a “buy” rating). The firm also lifted its earnings estimates for the company, citing “higher expected merger synergies.” In fact, all of Wall Street is optimistic toward KO; the OptionsHouse Research tab indicates that all 16 of the analysts following the stock have named it a “buy” or an “outperform.” (more…)
The recall drama isn’t over for Toyota Motor (NYSE:TM), which last week announced the recall of 1.1 million 2008 Corolla and Matrix vehicles, citing engine control troubles. The potential flaw may result in stalling, which is ironic given that the automaker’s recent high-profile recall dealt with unwanted acceleration.
Jim Cramer sounded the bullish horn on Citigroup (NYSE:C) Tuesday night, telling his Mad Money viewers that the beleaguered banking name is “the most undervalued bank in America.” The CNBC host also said Citi “remains my favorite speculation [stock].” Cramer did add the caveat that investors will need to be patient, as the stock probably won’t really begin to show strength until the U.S. government is finished selling off its C shares.
