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How Analysts Rate Monster Beverage Stock Post-4Q17

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Current ratings

As of March 1, 2018, 14 out of 19 analysts (or 74%) had “buy” recommendations on Monster Beverage stock. Four analysts had “hold” recommendations, and one analyst had a “sell” recommendation. 

Several analysts have revised their price targets for Monster Beverage stock following its 4Q17 results.

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Price target revisions

On March 1, 2018, Jefferies lowered its price target for Monster Beverage stock to $74 from $80. Wells Fargo cut its price target to $61 from $65, and Deutsche Bank brought its price target down to $63 from $66. Susquehanna lowered its price target to $54 from $55. Stifel lowered its price target to $71 from $73. BMO Capital lowered its price target to $68 from $71. Credit Suisse cut its price target to $72 from $77. Cowen and Company also lowered its price target to $74 from $77.

In contrast, Suntrust Robinson raised its price estimate for the company to $60 from $55. As of March 1, the 12-month price target for Monster Beverage was $69.00, indicating a potential upside of 27.3%.

Focus on innovation

Monster Energy is trying to boost its sales by innovating new beverages and package options. At the end of last year, Monster Beverage launched Espresso Monster in two flavors and NOS Nitro Mango in the US market. In 1Q18, the company launched Caffé Monster, a ready-to-drink energy coffee, in three flavors. The company also relaunched Muscle Monster in a 15-ounce plastic bottle in two flavors.

The company is looking for further growth in international markets through an expanded product portfolio. In 4Q17, the company launched Monster Energy Ultraviolet in Canada. Monster Beverage also launched Mutant Super Soda nationwide in Canada. In 1Q18, the company made another nationwide launch of its Monster Energy Ultraviolet drink, Monster Hydro, in three flavors and Full Throttle Orange in 16-ounce cans.

Other launches in international markets include Monster Hydro in a 550 mL plastic bottle in the United Kingdom, South Africa, and Ireland in 2017 and Monster Hydro in Sweden and Germany in 1Q18. The company is geared up to introduce Monster Energy Ultraviolet in the Czech Republic, Germany, Ireland, and the United Kingdom in 1Q18.

The company is also launching the Lewis Hamilton signature Monster Energy drink in Australia and New Zealand in 1Q18. This drink was available in 24 EMEA (Europe, the Middle East, and Africa) markets at the end of 2017.

Monster Beverage has several other innovations and package options lined up for 2018.

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