Coca-Cola (KO) is positioned to outperform peers in organic sales growth given its pricing power and solid volumes, Morgan Stanley said in a Wednesday note.

The company reported Q1 adjusted earnings Tuesday of $0.86 per share, up from $0.73 a year earlier, as revenue increased to $12.47 billion from $11.13 billion. For 2026, Coca-Cola expects organic revenue growth of 4% to 5% and comparable earnings growth of 8% to 9%.

Underlying organic sales growth in Q1 was 5% and Morgan Stanley said Coca-Cola could sustain this growth over the long term, well ahead of its peers. The investment firm noted Coke's structural pricing growth, the company's Fairlife business, and increasing volumes as drivers for organic sales growth.

Coca-Cola could also see catalysts from increasing Fairlife production capacity and "robust" pricing from rivals PepsiCo (PEP) and Keurig Dr Pepper (KDP) the brokerage added.

Morgan Stanley raised its price target on Coca-Cola to $89 from $87, with an overweight rating.

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