Monster Beverage (MNST): Survey Points to Reasonable Expectations, Raising PT - Jefferies
- Euro and global stocks hold Italy-related gains ahead of ECB
- GoDaddy (GDDY) to Acquire Host Europe Group in ~$1.8B Deal
- Twitter (TWTR) 'Takeover Money' Moves On as 'Trump Money' Moves In
- Amazon (AMZN) Could Open Over 2,000 Brick-and Mortar Groceries if Tests Succeed - DJ; Kroger (KR) on Watch
- Evercore ISI Upgrades Netflix (NFLX) to Hold; Competition Gaining Little Traction
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.
Jefferies analyst, Kevin Grundy, reiterated his Hold rating on shares of Monster Beverage (NASDAQ: MNST) after a US focused survey reflects an encouraging increase in penetration rates. The analyst expects some near-term slowing from dissipating pricing however. This should limit the lift from Mutant/Hydro launches. Great story, though at 35x EV/ULFCF, risk-reward looks balanced.
The US Consumer Survey reflects: (i) increasing penetration rates (20% vs. 17% in ’14); (ii) energy drink infringement on more “need states," and (iii) declining “negatives” (owing to relative quiet in D.C.) opens up the possibility to penetrate the ~35% of non-energy drink consumers under an admittedly unlikely "blue-sky" scenario. However, there could be some near-term slowing in the category which would limit the lift from Mutant/Hydro launches.
The price target goes to $175.00 (from $162.00).
Shares of Monster Beverage closed at $159.71 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Jefferies Raises Price Target on Parker-Hannifin (PH) Ahead of Acquisition Close
- Micron (MU) PT Raised to $25 at Brean Capital; Upbeat on Low Inventories
- Instinet Raises Price Target on Noble Energy (NBL) to $44; Reiterates Buy
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change
Related EntitiesJefferies & Co
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!