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Jefferies Thinks Monster Looks Fully Valued Following Coca-Cola Deal

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Jefferies downgraded Monster Beverage (NASDAQ: MNST) to Hold Monday following, citing the following:

  • Strategic potential is now less of a catalyst
  • Valuation looks full at 16.5x CY15E EV/EBITDA
  • The bar is now higher for the stock and global industry slowing remains a key risk factor

Jefferies still views the deal with Coca-Cola (NYSE: KO) as a win-win, but given the recent 30 percent run up in the shares of Monster, the firm sees significantly less stock upside over the next 12 months. Jefferies' new price target is $95, up from a previous $82.

Shares of Monster were down 2.7 percent recently.

Latest Ratings for MNST

DateFirmActionFromTo
Sep 2014Cowen & CompanyInitiates Coverage onMarket Perform
Aug 2014SunTrust Robinson HumphreyDowngradesBuyNeutral
Aug 2014Goldman SachsMaintainsBuy

View More Analyst Ratings for MNST
View the Latest Analyst Ratings

Posted-In: JefferiesAnalyst Color Downgrades Price Target Analyst Ratings

 

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