Jefferies Thinks Monster Looks Fully Valued Following Run Up Post Coke Deal

Jefferies downgraded Monster Beverage NASDAQ to Hold today following the KO announcement, citing the following: (i) strategic potential is now less of a catalyst (ii)valuation looks full at 16.5x CY15E EV/EBITDA (iii) the bar is now higher for the stock and global industry slowing remains a key risk factor They still view the deal with Coca Cola NYSE as a win-win, but given the recent 30 percent run up in the shares of MNST, they see significantly less stock upside over the next 12 months. Jefferies new price target is 95, up from a previous 82. Sharesof MNST are trading down 2.7 percent at 90.27.