The Coca-Cola Amatil Ltd (ASX: CCL) share price has traded sideways over the past 5 years, but could have some downside ahead if the analysts at Goldman Sachs are on the money. According to a July 4 note out of the investment bank Coca-Cola Amatil (CCL) faces problems generating top-line growth and EBIT margins that have been declining since 2011.
It's no secret that Coke faces challenges as its popularity with consumers wanes on health concerns. The declining demand has also made it harder for the bottler and distributor to charge premium prices for its core Coke product.
CCL recently completed the sale of its non-core SPC Ardoma fruit and vegetable processing business for $40 million, which the analysts view as a positive given it posted losses in the past. CCL also distributes dozens of other fizzy drink, alcohol, or bottled water products.
However, Goldman's analysts see CCL shares as "relatively expensive" versus global peers and slapped a 'sell' rating and $8.50 price target on the bottler.
The stock is up about 20% over the past six months to $10.34 as investors hunt the dividends on offer from business like CCL. If Goldman Sachs is correct though it faces downside over the next 12 months.
