Susquehanna Remains a Sell on Monster Beverage Corp


Susquehanna analyst Pablo Zuanic maintained a Sell rating on Monster Beverage Corp (NASDAQ: MNST) today and set a price target of $42. The company’s shares closed on Friday at $55.48.

Zuanic said:

“On Thursday’s analyst meeting following the AGM (after the close), management said they would “likely take pricing before year-end”, in response to higher costs. So, the stock moved up 5% on Friday. Certainly, on the margin, all else equal, management’s conviction and line of sight on a price hike were all good news. But we did not hear enough to make us think MNST should be trading, ex net cash, at 33x our CY19 EPS estimate (29x on consensus), given what we think is at best a ~10% EPS growth algorithm and a slew of risks not being factored in the stock’s valuation.”

According to TipRanks.com, Zuanic is a 3-star analyst with an average return of 4.1% and a 53.8% 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 $60.57.

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Based on Monster Beverage Corp’s latest earnings release for the quarter ending March 31, the company reported a quarterly net profit of $216 million. In comparison, last year the company had a net profit of $178 million.

Based on the recent corporate insider activity of 33 insiders, corporate insider sentiment is neutral on the stock.

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Monster Beverage Corp. is a holding company which engages in the development, marketing, sale, and distribution of energy drink beverages and concentrates. It operates through the following segments: Finished Products, Concentrate, and Other. The Finished Products segment consists of the Monster Energy drink products.

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