UBS Maintains a 'Buy' on Monster Beverage (MNST); Price Increase Shows Confidence in Demand

UBS maintains a 'Buy' on Monster Beverage (NASDAQ: MNST) price target raised from $67 to $70.

Analyst, Kaumil S. Gajrawala, says, "Volume trends on Rehab and other new products remain very strong. Incrementally, we are now seeing price increases on Monster Rehab. We are raising our 2012 estimates to reflect the price increase and our out year estimates to reflect the additional confidence the price increase implies. Our 2012 and ‘13 EPSe are now $2.04 and $2.59, respectively, from $2.03 and $2.47."

Gajrawala also feels that with a growing cash balance (approx. $771 mln), MNST is likely to reward investors with a dividend, continued buybacks, and international expansion.

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 $61.81 yesterday.

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