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

Apr 2019MaintainsBuyBuy
Apr 2019DowngradesOutperformNeutral
Mar 2019MaintainsEqual-WeightEqual-Weight

View More Analyst Ratings for MNST
View the Latest Analyst Ratings

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


Related Articles (KO + MNST)

View Comments and Join the Discussion!

How Far Along We Are In The Current Business Cycle?

The Market In 5 Minutes