Coca-Cola Co (KO) reported its first-quarter organic growth higher than BofA and Street estimates, and this growth was led by higher volumes, according to BofA Securities.

The Coca-Cola Analyst: Bryan Spillane maintained a Buy rating for Coca-Cola, while keeping the price target unchanged at $70.

The Coca-Cola Thesis: Although gross margins declined by 90 basis points and came in lower than expected, adjusted earnings were higher than the consensus estimates, Spillane said in the note.

“Unit case volume grew +8% YoY, ahead of BofAe/Street at +3.6%/+4.7% and lagged concentrate shipments due to timing-related inventory build despite one fewer selling days,” the analyst wrote. “Higher mix of lower-margin businesses likely contributed to gross margin miss in 1Q,” he added.

The company reiterated its guidance for fiscal 2022, “which now includes and absorbs impacts from suspended operations in Russia,” Spillane mentioned. He further stated that Coca-Cola is likely to “emerge from the COVID-19 crisis in a stronger position.”

KO Price Action: Shares of Coca-Cola had risen by 0.14% to $65.34 at the time of publication Monday.