Investment bank UBS has raised its rating for the Coca-Cola Company (KO) to buy. UBS said that it believes that the soft drink group was experiencing a turnaround.

UBS said that marketing efforts and improved business execution should pay off for Coke and that it is poised for an acceleration in sales growth.

In a research note UBS said: "We believe investors are under-appreciating the impact of KO's implementation of US$400m worth of incremental marketing/innovation, which is almost entirely back-half loaded (even though it has shown up in 1H on GAAP financials).
"Moreover, we believe a stronger bottling network is freeing up funding for KO to increase brand marketing over promotional funding."
The bank also increased its price target on the stock to US$53 from US$46.