UPDATE 1-RESEARCH ALERT-UBS raises Coca-Cola to buy

March 4 (Reuters) - UBS raised Coca-Cola Co (KO.N: Cotización) to "buy" from "neutral" on valuation and said the world's largest soft-drink maker would see mid-single digit global volume growth.

Coca-Cola shares will also benefit from strong free cash flow growth driving share buybacks, and flexibility from productivity gains of $400 million to $500 million annually by 2011, the brokerage said in a note.

The company would see cost synergies of $350 million from the bottler transaction, UBS said, adding a dominant position in emerging markets was also a positive for Coca-Cola.

Last month, Coca-Cola Co said it would take over the North American operations of its top bottler, Coca-Cola Enterprises Inc (CCE.N: Cotización), in a strategic reversal that would level the field after a similar deal by PepsiCo (PEP.N: Cotización). [ID:nN25236905]

Coca-Cola's bottler deal indicates change in the company's culture and that the management is more willing, nimble and aggressive than in the past, said the brokerage, which maintained its price target of $62 on the stock.

Shares of Coca-Cola rose 62 cents to $54.55 in premarket trade. They closed at $53.93 Wednesday on the New York Stock Exchange. (Reporting by Vidya Lakshmi in Bangalore; Editing by Aradhana Aravindan)