Goldman Defends Monster Beverage (MNST)
Yesterday Monster Beverage (Nasdaq: MNST) reported revenue that fell short of census, but Goldman believes its shortfall can be partially attributed to "transient factors", including distributor levels in Canada and FX.
"Nielsen data for underlying growth has proven right in the past – On a quarterly basis from 4Q06-3Q12, Nielsen convenience store data has an 81% correlation with MNST's reported US sales growth. We saw a discrepancy in 3Q12 with MNST reporting 14% US growth and Nielsen at +18%, but given the historical correlation and shipment volatility time to time, we believe the Nielsen data is more representative of MNST's true underlying growth trend,” wrote analyst Judy E. Hong.
She is encouraged that US consumer growth has been trending near 18 to 20 percent in each of the past three months and that MNST is still gaining market share.
Goldman Sachs has a Buy rating on Monster Beverage (NASDAQ: MNST) with a reduced price target of $58.00 (from $62.00).
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 $44.97 yesterday, with a 52 week range of $40.06-$111.18.
"Nielsen data for underlying growth has proven right in the past – On a quarterly basis from 4Q06-3Q12, Nielsen convenience store data has an 81% correlation with MNST's reported US sales growth. We saw a discrepancy in 3Q12 with MNST reporting 14% US growth and Nielsen at +18%, but given the historical correlation and shipment volatility time to time, we believe the Nielsen data is more representative of MNST's true underlying growth trend,” wrote analyst Judy E. Hong.
She is encouraged that US consumer growth has been trending near 18 to 20 percent in each of the past three months and that MNST is still gaining market share.
Goldman Sachs has a Buy rating on Monster Beverage (NASDAQ: MNST) with a reduced price target of $58.00 (from $62.00).
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 $44.97 yesterday, with a 52 week range of $40.06-$111.18.