Goldman Sachs analyst Bonnie Herzog has reiterated their bullish stance on MNST stock, giving a Buy rating yesterday.
Bonnie Herzog has given his Buy rating due to a combination of factors that indicate strong performance and potential for continued growth for Monster Beverage Corp. The company concluded the fiscal year with robust double-digit sales growth, and while this was slightly below expectations, significant gross margin expansion allowed for adjusted earnings per share to meet consensus estimates. Herzog notes an impressive year-over-year topline growth of 14.4%, which adjusts to 16.1% on a currency-neutral basis, propelled by a considerable 11.5% increase in volume.
Moreover, Herzog is optimistic about the company’s gross margins, which exceeded expectations and showed improvement over the previous quarter. This improvement reflects Monster Beverage’s strategic pricing actions, reduced transportation costs, and lower input costs. The sustained strong consumer demand, evidenced by a marked 18% year-over-year increase in January sales, reaffirms Herzog’s bullish stance, despite softer consumption patterns seen by peers. Given these factors, along with Monster Beverage’s positioning as an attractive growth story in the Staples sector, Herzog reiterates a Buy rating and a price target of $68.
In another report released yesterday, RBC Capital also maintained a Buy rating on the stock with a $60.00 price target.
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Monster Beverage (MNST) Company Description:
California-based Monster Beverage Corp. develops, markets, sells and distributes energy drink beverages and concentrates including Monster Energy, Relentless and Burn in the United States and internationally. It operates through the following segments: Monster Energy Drinks, Strategic Brands and Other.
Read More on MNST:
- CORRECTION – Monster Beverage Reports 2023 Fourth Quarter and Full-Year Financial Results
- Monster Beverage Reports 2023 Fourth Quarter and Full-Year Financial Results
- MNST Upcoming Earnings Report: What to Expect?
- Monster Beverage to Report Financial Results for 2023 Fourth Quarter on February 28, 2024
- Monster Beverage Corporation’s CANarchy Craft Brewery Collective to Operate as Monster Brewing Company
