Banc of America has increased its rating of Coca-Cola to "buy" saying the company's earnings risk is low.

In a research note, BOA analyst Bryan Spillane said 2005 volume growth is running ahead of plan with the help of developing markets in Latin America and Eastern Europe - along with "more marketing muscle in US and Western Europe."

He added that the fallout from Hurricane Katrina poses some risk, but added "we think the impact is manageable."

Spillane continued: "We are beginning to feel more comfortable with the company's ability to hit long-term growth targets as non-carbonated beverages and developing countries drive the bulk of the incremental profits. We believe 2006 is the year where KO can begin to show more sustainable operating profit growth."