Coca-Cola (KO) is expected to report Q1 earnings largely in line with estimates, UBS Securities said in a note emailed Tuesday.

The firm forecasts diluted earnings per share of $0.71 for the quarter, a penny below the FactSet consensus of $0.72.

UBS anticipates the company will maintain its 2025 outlook for organic sales growth of 5% to 6% and foreign exchange-neutral EPS growth of 8% to 10%.

"With the US$ having weakened, we think it is possible to see a more favorable currency outlook vs. what was embedded in the company's initial guidance range," the firm said.

UBS expects full-year EPS of $2.96, which is in line with consensus and toward the high end of the company's implied guidance range of $2.94 to $2.97.

Despite some softness in tracked trends across the US and Europe and ongoing uncertainty in international markets, investor sentiment remains constructive, according to UBS.

The firm believes Coca-Cola is still positioned to deliver organic revenue growth ahead of peers, supported by strong pricing and bottom-line visibility, especially amid a more favorable currency backdrop.

"In addition, we believe there is greater confidence in the company's ability to deliver on the bottom line, especially considering favorable moves in currency," according to the note.

UBS has a buy rating on the stock with a price target of $84.

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