Top broker says Coca-Cola Amatil Ltd shares are a buy

Credit: James Flynn

The Coca-Cola Amatil Ltd (ASX: CCL) share price climbed higher on Wednesday, finishing the day up by 1.5% to $7.93.

But according to one leading broker there could still be more gains ahead for the beverage company’s shares.

A note out of Credit Suisse this morning reveals that the investment bank’s analysts have retained their outperform rating and $9.90 price target on its shares.

According to the note, the broker believes that Coca-Cola Amatil’s shares are undervalued and finds its current dividend yield attractive.

Furthermore, Credit Suisse believes that the company’s New Zealand operations are performing strongly, offsetting some of the weakness being seen in its Australian business.

The investment bank’s price target implies potential upside of 25% for its shares over the next 12 months.

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Motley Fool contributor Motley Fool Staff has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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