A not so surprising move today happened as one of the biggest and most recognizable companies in the world snaps up a stake in an up and coming sports beverage. Coca-Cola is snapping up a minority stake in sports drink manufacturer BodyArmor, whos investors and endorsers include the likes of Kobe Bryant, Rob Gronkowski, and rival Keurig Dr. Pepper ($KDP).

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While financial terms of the deal weren’t disclosed, BevNet.com reported that in 2015, the then Dr. Pepper Snapple Group snapped up 11.7% of BodyArmor for $20 million, giving the company back then a valuation of $170 million. Looking at recent sales history, 2016 saw sales grow to $130 million, representing a 154% increase over 2015. Projections for 2017, however, were projected to be in the $250-$300 million range. While the sales numbers might not even be big enough to register against Gatorades $3.5 billion in sales, the market is clearly looking for what BodyArmor is offering, and sales show.

BodyArmor isn’t being run by a bunch of nobodys either, with beverage industry veterans at the helm, with leadership including the guys behind vitaminwater and Fuze. The brand is positioned nicely within the premium sports drink category, and a major reason why Coca-Cola  could be interested in the brand and company is a defensive play against PepsiCo ($PEP) and Gatorade.

Since BodyArmor sales include all 50 states, and major distribution into convenience stores, you can see why this deal becomes more and more attractive to Coke as they can expand shelf-space in an already premium market.

Coca-Cola is one of the most recognized brands in the world, coming in along the likes of Disney ($DIS) and Apple ($AAPL), and is also a strong financial play. Share price is a solid player, with the company trading between $41.45 and $48.62 for the 52 week range, and a solid 3.4% dividend. Quarterly growth is just north of 9%, and performance for the year is .53%.

When we run our 5 YR EBITDA Discounted Cash Flow model, we can see a 15% upside to the stock, and put a price target of $52.85 on the shares. Fair value range is between $49.32 and $56.50, meaning no matter how you slice it, Coca-Cola is a strong addition to a portfolio.