Newcastle currently sit in 11th place after two successive defeats to Bournemouth and Burnley.
Rafa Benitez's side currently sit eleventh in the Premier League table after 11 matches, clocking up four wins, two draws and five losses, losing their last two outings against Bournemouth and Burnley.
The Toon gained promotion from the Championship but have started well back in England's top tier, remaining well clear of the bottom three as Benitez looks to keep his side afloat.
Former Newcastle striker Cole claimed that they could go even one better and finish in the top 10 come May 2018, if they can make a couple of signings with a potential takeover looming.
“Rafa Benitez has them really well organised, and you can tell there’s a really good spirit in the team," Cole said. "There are quite a few young players, but they clearly get on with each other and that’s important whatever level you’re playing at.
“There’s been talk about a possible takeover, so hopefully when it comes to January, there’ll be a bit of money to spend. If they can make a couple of additions, and continue playing as they are, there’s no reason why they can’t finish in the top half.”
The Evening Chronicle claims that Amanda Staveley's PCP Partners group remain optimistic that a deal can be struck to complete a takeover, after current owner Mike Ashley put the club up for sale in October.
Newcastle are next in action against Jose Mourinho's Manchester United at Old Trafford, as they look to defy the odds to put their run of two successive defeats behind them.