Monster Beverage (MNST) PT Raised to $110 at Stifel

April 13, 2021 5:06 PM EDT
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Price: $91.25 -3.97%

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    16 Buy, 10 Hold, 1 Sell

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Stifel analyst Mark Astrachan raised the price target on Monster Beverage (NASDAQ: MNST) to $110.00 (from $105.00) while maintaining a Buy rating and raised sales estimates.

The analyst commented, "We lift 2021-2022 sales expectations reflecting strong end-demand, per U.S. scanner data, now anticipating 1Q21 and 2021 sales growth of 17% and 15%, respectively (~100-200bps above consensus). Our EPS estimates are largely unchanged, with sales upside offset by lower gross margin expectations reflecting heightened input costs, mainly aluminum (~25% of COGS and now anticipated to increase 32% in 2021). Sales estimates have an upward bias given accelerating company/category growth (Monster 25% growth in U.S. scanner data over the last four weeks). Our price target goes to $110, 26x 2022E EBIT, with the higher multiple reflective of stronger company and category sales growth and that input cost pressure is largely transitory. We anticipate innovation to continue to benefit sales, including an expected 2H21 introduction of a non-alcoholic seltzer that could add 200bps-300bps to NTM sales growth, with a hard seltzer/alcoholic beverage launch likely to be delayed until at least 2022."



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