The Coca-Cola Company (KO) made progress in its long-standing $14 billion tax dispute with the IRS. Judges in the 11th Circuit Court of Appeals appeared sympathetic to the company's arguments regarding foreign income allocation during a recent hearing.
Piper Sandler analysts reported that the court seemed open to claims that Coca-Cola was denied due process when the IRS altered its calculation methods. While the court has not issued a final ruling, the favorable reception marks a significant step for the beverage giant.
Coca-Cola shares traded up 0.6% following the news. Piper Sandler reiterated an Overweight rating on the stock, noting that while a loss would be manageable, current proceedings suggest a more positive potential outcome.