Goldman Says Buy Weakness In Monster Beverage; Q1 Earnings Due Friday

Goldman Sachs has recommended investors buy on any weakness in the shares of Monster Beverage Corporation

, which is set to report its first quarter numbers on April 29. Analyst Judy Hong, who cut his first quarter EPS view by $0.02 to $0.71 (lower than consensus estimate of $0.74), expects acceleration in sales growth and "still sees healthy 30%/22%/18% EPS growth from 2016E-2018E." While looking for a "choppy" first quarter results, the analyst said recent category trends have softened a bit despite a "stable" US business. On the international front, Hong noted that MNST faces lingering bottler transition disruptions, while The Coca-Cola Co

's legacy brands are still weak. However, Hong added that the company has a "smoother sailing ahead," with much of the transition disruptions abating and company entering in to new markets such as China and Nigeria. The analyst projects China to contribute $50 million in 2016. "Execution of the $2bn announced buyback could also provide support, and COGS savings from the AFF acquisition should add to EPS," Hong added. Hong has a Buy rating and $160 price target on MNST stock, which rose 1.11 percent to $124.36.