Market Overview

Monster Beverage Remains A Top Pick At Jefferies

Monster Beverage Remains A Top Pick At Jefferies

Jefferies reiterated Monster Beverage Corporation (NASDAQ: MNST) as a top pick Thursday.

According to the research report, Kevin Grundy, a Jefferies Equity analyst, sees “improving US results, sustainably strong international growth, the ability to offset unfavorable geographic mix, and M&A optionality should lead to continued outperformance.” Grundy has set a $63 price target.


Key Takeaways From The Report

  • Grundy believes Monster’s recent improvements supports his U.S. sales forecast (between 5 and 7 percent), and he expects to see accelerated growth in the coming months.
  • As Monster continues to gain market share and sustain mid-single-digit growth, Grundy sees management delivering strong international growth between 15 and 25 percent over the next five years.
  • Grundy expects Monster to have unfavorable margins, but he believes this will be offset over time as the company continues to build and grow internationally.
  • The Coca-Cola Co (NYSE: KO) CEO, James Quincy, has re-prioritized growth and it has become more likely that Coca-Cola could acquire the remaining 82 percent of Monster shares. Grundy stated, “A deal at 25x EV/EBITDA (~$70/share) would be well received by KO’s investors and ~50-75 bps/low-single-digit % accretive to the co.'s org sales/EPS.”

Related Links:

Here's Why Monster Has Little Upside Going Into Earnings

Household Names JPMorgan Initiated Ratings On This Week

Latest Ratings for MNST

Oct 2020Morgan StanleyMaintainsEqual-Weight
Aug 2020Morgan StanleyMaintainsEqual-Weight
Aug 2020Credit SuisseMaintainsOutperform

View More Analyst Ratings for MNST
View the Latest Analyst Ratings


Related Articles (KO + MNST)

View Comments and Join the Discussion!

Posted-In: Analyst Color Long Ideas M&A Rumors Price Target Reiteration Analyst Ratings Trading Ideas Best of Benzinga

Latest Ratings

NOMDBTIGInitiates Coverage On30.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at