Stifel Nicolaus Likes Hansen Natural Corp. (NASDAQ:HANS)

Analysts from Stifel Nicolaus think that Hansen Natural Corporation (NASDAQ: HANS) "has a robust outlook for revenue growth, led by continued U.S. share gains and international expansion, and strong free cash flow generation." Analysts think that while this is an attractive stock on its own, but the potential of a HANS acquisition makes the stock even more attractive.

Stifel Nicolaus claims to have no knowledge of any M&A negotiations, it thinks that Coke's proposed acquisition of CCE North America (NYSE: CCE) “makes an eventual acquisition of Hansen by Coke more likely given the substantial distribution and cost savings opportunity”

Analysts go on to say, “we believe current valuation underestimates Hansen's earnings power and that the company remains capable of achieving at least mid-to-high single-digit revenue growth for the foreseeable future (2-3 years). Our 12-month target price of $45 per share is 8.6x 2011E EBITDA, or 16.7x our 2011 EPS estimate, (15.0x excluding $4.58 in cash per share).”