Goldman Removes Monster (MNST) from Conviction Buy List; Range-Bound on Legal Risks

Goldman Sachs removed Monster Beverage (NASDAQ: MNST) from its Conviction Buy List following reports that the FDA has received reports of five deaths plus a report of a heart attack possibly linked to Monster energy drink. However the firm is keeping a Buy rating with a price target of $62.00 (from $75.00).

"While the FDA has yet to establish a causal link between these deaths and the drink, we believe MNST shares could be range-bound in the near term on increased regulatory and legal concerns," the firm comments.

Fundamentally, the firm said the company's strong top- and bottom-line growth outlook intact and doesn't believe headlines will impact sales growth. In addition, the firm doesn't believe the ultimate legal and regulatory outcome will be a significantly onerous one.

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 $45.73 yesterday.

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