With rival beverage giant Pepsi (PEP) reporting a better than expected quarter Thursday morning, Coca-Cola (KO) is in focus after two Wall Street research firms argued it could be an eventual acquisition target for the combined AB InBev (BUD)-SABMiller (SBMRY).

STIFEL GETS SELECTIVE ON CONSUMER STOCKS, DOWNGRADES COKE: Stifel analyst Mark Swartzberg downgraded Coca-Cola to Hold on Thursday while trimming his price target to $45 from $50 on the back of Pepsi's results this morning. Neither company looks poised for multiple expansion, Swartzberg says, arguing that "data and common sense" suggest the overvalued consumer staples sector will likely come down, particularly considering a looming Federal Reserve hike. The analyst is "becoming more selective" in doling out Buy recommendations to the sector, naming Molson Coors (TAP), AB InBev and Constellation (STZ) among his reduced collection of favorites while contending that Coca-Cola European Partners (CCE), Coke's major bottling operation on the continent, offers a better play on the Coke story. Swartzberg also speculates that "in time," AB InBev could buy Coca-Cola, though he cautions that the company will likely have its hands full realizing the "tens of billions" in new beer opportunities after its merger with SABMiller.

HSBC SAYS COKE ACQUISITION 'ULTIMATE GOAL': As part of a larger, bullish note on AB InBev, HSBC analyst Anthony Bucalo argued today that the beer giant's merger "will impact nearly every major company across global beverages," with especially heavy consequences for Heineken (HINKY). As part of that shift, Bucalo believes that Anheuser Busch's "ultimate goal" is the potential acquisition of Coke, adding that the combined beer company represents a "strong vehicle" for another sizable transaction. On the bottling side, the analyst sees the beer merger impacting the "entire" Coke bottling system, particularly Coca-Cola FEMSA (KOF) given that parent company FEMSA carries a stake in Heineken. "Fault lines" exposing tensions between AB InBev-SABMiller and the above parties will come to light over the next several years, he concludes.

PRICE ACTION: Shares of Coca-Cola have crossed and recrossed the green line throughout the day, and are now roughly flat. Shares of PepsiCo are up 0.4% to $107.83. Coke's U.S. bottler, Coca-Cola Bottling (COKE), is down 1% to $144.35.