UPDATE: Stifel Nicolaus Downgrades Monster Beverage Corporation to Hold on Sales Outlook
Stifel Nicolaus reduced its rating on Monster Beverage Corporation (NASDAQ: MNST) from Buy to Hold and suspended its previous $73 price target.
Stifel Nicolaus commented, "We downgrade shares of Monster Beverage to Hold from Buy as we expect a greater-than-anticipated deceleration in sales growth through 1Q13. Monster Beverage's sales growth missed expectations in 2Q12 and subsequent U.S. scanner data has showed further slowdown. Recent channel checks, including attending the National Association of Convenience Stores show earlier this week, add conviction to our view. While we attribute the deceleration mainly to increasingly difficult y/y comparisons and lapping the successful introduction of Monster Rehab, we believe the earnings multiple is unlikely to expand until sales re-accelerates and/or expectations are reduced."
Monster Beverage Corporation closed at $56.74 on Tuesday.
Latest Ratings for MNST
|May 2015||Goldman Sachs||Downgrades||Conviction Buy||Neutral|
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.