On Thursday the Coca Cola Amatil Ltd (ASX: CCL) share price hit a low of $7.63, its lowest price in nearly a decade.
Unfortunately for shareholders, Morgan Stanley seems to agree with the market, retaining the company's underperform rating and $8 share price target.
Although Coca-Cola Amatil expects to maintain profits for the remainder of 2017, a $40 million investment into reduced prices, marketing, sales and technology will likely push down profits in 2018.
The company is attempting to rebalance its portfolio, which is currently weighted to carbonated soft drinks. Carbonated soft drink volumes are forecast to be in decline until 2025.
Coca-Cola Amatil is planning to restore sales growth in an effort to speed up the reweighting of its portfolio with price cuts, new product launches, and new online or hospitality trade on the horizon.
