Morgan Stanley Reiterates Overweight Rating for Monster Beverage Corp (MNST)
Monster Beverage Corp (NASDAQ:MNST)‘s stock had its “overweight” rating restated by equities research analysts at Morgan Stanley in a research note issued to investors on Friday, Analyst Ratings Network reports. They currently have a $82.00 price objective on the stock, down from their previous price objective of $85.00. Morgan Stanley’s target price would suggest a potential upside of 24.02% from the company’s current price.
The analysts wrote, “MNST Q1 EPS of $0.55 was above our on-consensus $0.49 estimate on a ~7% operating profit beat vs. consensus with better than expected margins and 2 cents of tax favorability, offsetting 1% topline downside. Q1 sales were -1% below consensus, with US gross sales up +10.6% (+11.8% DSD growth and a –9.5% warehouse decline) and international up +10.4%. “Gross margins were strong, up 145 bps y-o-y (+90 bps above consensus), benefitting from product mix (higher sales of lower cost Ultra products), lower freight, and Peace Tea/24-pack pricing. SD&A as a % of sales was down 245 bps y-o-y (130 bps favorable vs. consensus), driven by a 280 bp y-o-y reduction in selling expenses, as MNST pulled back on US promotional gear and has tightened its focus on international promotion, sampling, and sales force spending. “MNST noted EMEA was profitable for the first time, driven by more disciplined expense management, with GM’s internationally still down y-o-y. Favorable margin drivers generally seem sustainable and should further by aided by local production commencing in Japan. Post the Q1 beat, our EPS is unchanged, with lower topline forecasts offset by higher margins and a lower tax rate, but we do expect consensus EPS to move up.”
Monster Beverage Corp (NASDAQ:MNST) traded down 2.04% during mid-day trading on Friday, hitting $64.77. 739,673 shares of the company’s stock traded hands. Monster Beverage Corp has a one year low of $51.15 and a one year high of $75.63. The stock has a 50-day moving average of $67.08 and a 200-day moving average of $65.88. The company has a market cap of $10.809 billion and a P/E ratio of 33.91.
Monster Beverage Corp (NASDAQ:MNST) last announced its earnings results on Thursday, May 8th. The company reported $0.55 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.49 by $0.06. The company had revenue of $536.10 million for the quarter, compared to the consensus estimate of $542.30 million. During the same quarter in the prior year, the company posted $0.37 earnings per share. The company’s quarterly revenue was up 10.7% on a year-over-year basis. Analysts expect that Monster Beverage Corp will post $2.46 EPS for the current fiscal year.
A number of other firms have also recently commented on MNST. Analysts at UBS AG cut their price target on shares of Monster Beverage Corp from $84.00 to $75.00 in a research note on Friday. Separately, analysts at Stifel Nicolaus cut their price target on shares of Monster Beverage Corp from $80.00 to $78.00 in a research note on Friday. They now have a “buy” rating on the stock. Finally, analysts at Zacks reiterated a “neutral” rating on shares of Monster Beverage Corp in a research note on Friday, April 11th. They now have a $67.00 price target on the stock. One research analyst has rated the stock with a sell rating, three have assigned a hold rating, eight have given a buy rating and one has given a strong buy rating to the stock. Monster Beverage Corp presently has an average rating of “Buy” and a consensus target price of $72.36.
Monster Beverage Corporation is a holding company. The Company develops, markets, sells and distributes alternative beverage, such as non-carbonated ready-to-drink iced teas, lemonades, juice cocktails, single-serve juices and fruit beverages, ready-to-drink dairy and coffee drinks, energy drinks, sports drinks, and single-serve still water (NASDAQ:MNST) with beverages, including sodas that are considered natural, sparkling juices and flavored sparkling beverages.
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