Coca-Cola's Diversified Supply Chain Limits Impact Of Trump's Tariffs, Says JPMorgan

Coca-Cola Co. (KO) is well-cushioned against the adverse impact of Trump’s tariffs, according to analysts at JPMorgan, as the beverage giant’s stock has continued to outperform benchmark U.S. indices in 2025 by a wide margin.

In a note seen by CNBC, the brokerage stated that Coca-Cola’s diversified supply chain helps the company mitigate some of the impact of Trump’s tariffs, thereby shielding both its top and bottom lines.

Coca-Cola’s stock has surged nearly 16% year-to-date, while the benchmark Dow Jones and the S&P 500 indices have lost 11% and 13% during the same period, respectively.

The beverage maker’s spirited surge is not done yet, JPMorgan added, noting that the stock may yet have some more juice for the rest of the year.

It hiked the price target for Coca-Cola stock to $78 from $74, while maintaining its ‘Overweight’ rating.

Underscoring its bullish thesis for Coca-Cola, JPMorgan noted that the company can adjust its prices, serving sizes, and other offerings to meet customer needs.

“The company’s broad geographic reach (the U.S. represents only about 17% of systemwide volumes) means that oftentimes softness in a particular market can be offset by stronger-than-expected performance in others,” it added.

The brokerage said Coca-Cola’s “all-weather strategy” makes the company a “port in a storm,” highlighting the recent volatility in U.S. equity markets, which are currently battling Trump’s tariff shocks.

JPMorgan added that while Coca-Cola is not completely immune to Trump’s tariffs, the impact may be “limited” on the beverage maker’s books.

Amid Coca-Cola’s double-digit stock gains this year so far, the SPDR S&P 500 ETF Trust (SPY), which tracks the S&P 500 index, has lost 13.1% in the same period.

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