Buy Monster Beverage (MNST) Ahead of Q3 on Possible Price Hike - Goldman Sachs

Goldman Sachs analyst Bonnie Herzog reiterated a Buy rating and $107.00 price target on Monster Beverage (NASDAQ: MNST) and told clients to buy the stock ahead of Q3 results as they see a favorable risk/reward and a possible price hike.

Herzog commented, "We encourage investors to buy MNST ahead of its Q3 results tomorrow as we see an increasingly favorable risk/reward given the recent pullback in the stock and our expectation for a strong topline beat as well as the potential for commentary around a price increase. Having said that, margins will likely be pressured again and therefore don't expect a big bottom line beat. Given the mounting cost pressures that MNST is facing, we increasingly believe MNST is likely to consider (and possibly discuss on its Q3 call) taking a price increase soon even if Red Bull does not take one soon."

For an analyst ratings summary and ratings history on Monster Beverage click here. For more ratings news on Monster Beverage click here.

Shares of Monster Beverage closed at $85.89 yesterday.

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