Monster Beverage (MNST): Better Than Feared - Stifel
- Top 10 News for 12/2: Crude Rips on OPEC Cut; Starbucks' Schultz Steps Down; Nonfarm Payrolls Flat in Nov.
- Unemployment Rate Drops to 4.6%
- Bond yields slip on U.S. jobs data, euro steady before Italy vote
- Alibaba (BABA) Founder Jack Ma Discuss Plans to Retire; 'I Don't Want to Die at the Office'
- Starbucks Coffee (SBUX) CEO Howard Schultz to Step Down, Appointed Executive Chairman; Kevin Johnson New CEO
Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a FREE trial here.
Stifel analyst, Mark Astrachan, reiterated his Buy rating on shares of Monster Beverage (NASDAQ: MNST) and raised his price target to $185.00 (from $178.00) after Monster reported disappointing 3Q results with sales and EPS below expectations.
The analyst thinks the miss was better than feared, with the difference largely attributable to shipment timing in the U.S. and some sales de-leverage on fixed costs, though certain expenses were higher than anticipated and represent a point worth watching going forward.
On the positive side, the adjusted month of October gross sales, given on the call, meaningfully accelerated from 3Q sales levels – the analyst estimates up 19% – with implied U.S. and international sales improving sequentially. This implies that U.S. end-demand remains solid and accelerating international sales reflect share gains resulting from new Coke distribution.
Despite the weak results last quarter, the analyst is keeping his Buy rating but reducing the 2017-2018 sales and EPS estimates by 0.4% and 4.0%.
The target price drops to $178 representing 33x 2018E EPS, excluding cash.
Shares of Monster Beverage closed at $140.21 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Start Your Engines, The Monster Beverage (MNST) / NASCAR Deal Is Final - Stifel
- Brean Capital Cuts Price Target on G-III Apparel Group (GIII) Following 3Q Miss
- Shopify (SHOP): CFO Meetings Indicate Strong Growth Ahead - Wedbush
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change, Earnings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!