Jefferies Thinks Monster Looks Fully Valued Following Coca-Cola Deal
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.
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