.jpg "Monster Beverage Corp (NASDAQ: MNST)")
Companies in the Consumer Goods sector have received a lot of coverage today as analysts weigh in on Monster Beverage Corp (NASDAQ: MNST) and JM Smucker (NYSE: SJM).
Monster Beverage Corp (NASDAQ: MNST)
In a report released today, Pablo Zuanic from Susquehanna maintained a Sell rating on Monster Beverage Corp (NASDAQ: MNST), with a price target of $42. The company’s shares opened today at $53.30.
Zuanic noted:
“Although up from its mid-May trough of $48, MNST is down 23% from its January peak of $69 (SPX -3% in that time). Ex net cash of $2.80 per share ($1,636Mn net cash, as per consensus by end of CY19), MNST trades at 26x the CY19 consensus of $1.94 (we are at $1.68 to factor in $500Mn in buybacks from for this year, after the new allowance was announced). Yes, that is well below the low-30s P/E the stock garnered not too long ago. So, at these levels, the consensus view is that risks are to the upside (share buybacks, US price hikes, international growth). But we are not ready to close our short thesis. Below we list the questions we would want to clarify before becoming more constructive. Based on what we know and believe at present, we think 26x is actually rich for MNST.”
According to TipRanks.com, Zuanic is a 3-star analyst with an average return of 4.0% and a 54.1% success rate. Zuanic covers the Consumer Goods sector, focusing on stocks such as Coca-Cola European Partners, Constellation Brands Inc, and Anheuser-Busch Inbev Sa.
Monster Beverage Corp has an analyst consensus of Moderate Buy, with a price target consensus of $60.43.
See today’s analyst top recommended stocks >>
JM Smucker (NYSE: SJM)
In a report released today, Akshay Jagdale from Jefferies maintained a Buy rating on JM Smucker (NYSE: SJM), with a price target of $135. The company’s shares opened today at $99.02, close to its 52-week low of $96.13.
Jagdale said:
“4Q adj. EBIT missed our & consensus estimates by 8% & 6%, respectively, driven primarily by lower than expected profitability in Coffee. Furthermore, preliminary FY19 EPS guidance was set 7% below consensus & 10% below our estimate, reflecting higher interest costs due to Ainsworth. Excluding a planned increase of $50M in A&P, we estimate implied FY19 EBIT guidance is roughly in line with the Street.”
According to TipRanks.com, Jagdale is a 4-star analyst with an average return of 4.9% and a 53.1% success rate. Jagdale covers the Consumer Goods sector, focusing on stocks such as Lamb Weston Holdings, McCormick & Company, and J & J Snack Foods.
Currently, the analyst consensus on JM Smucker is Hold and the average price target is $124.40, representing a 25.6% upside.
In a report issued on June 3, Susquehanna also assigned a Buy rating to the stock with a $159 price target.
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