How Analysts View Monster Beverage Stock after 2Q17 Results
12-month price target
After Monster Beverage (MNST) released its 2Q17 results on August 8, 2017, many analysts revised their price targets for the stock. On August 9, Credit Suisse raised its price target to $61 from $60. Jefferies also raised its target price to $65 from $63. SunTrust Robinson Humphrey raised its target price to $50 from $45, and JPMorgan upped its price target to $62 from $56.
As of August 9, the average 12-month price target for Monster Beverage stock was $59.76. This target reflects a 15.0% upside potential for the stock compared to the closing price of $52.03 on August 9.
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As of August 9, 2017, 78.0%, or 14 of the 18 analysts covering MNST stock, have a “buy” recommendation for the stock. Four analysts have a “hold” rating for the stock, and none of them currently have a “sell” rating.
Monster Beverage is delivering a higher sales growth rate than larger nonalcoholic beverage peers such as Coca-Cola (KO) and PepsiCo (PEP). The company’s energy drinks portfolio is enjoying strong demand in domestic as well as international markets.
Monster Beverage’s strategic deal with Coca-Cola (KO) in 2015 further expanded the company’s energy drinks portfolio by adding Coca-Cola’s energy drink brands such as NOS and Full Throttle. Under the deal, Monster Beverage has been transitioning from third-party distributors to Coca-Cola’s distribution system. That’s expected to further strengthen the company’s international presence.
Monster Beverage is also focused on the innovation of new products and flavors. In 2Q17, it launched White Lightning, a line extension of the company’s Mutant brand, to limited customers. MNST expected to have a general market launch for this zero-sugar offering in July. Other new products include Monster Hydro energy drinks in three flavors: Monster Energy, Ultra Violet, and Mango Loco, which is a new flavor in the Monster Energy juice family.
For more updates, visit Market Realist’s Nonalcoholic Beverages page.