Bank of America Securities analyst Peter Galbo reiterated a Buy rating on Monster Beverage (MNST – Research Report) today and set a price target of $65.00.
Peter Galbo has given his Buy rating due to a combination of factors that suggest a positive outlook for Monster Beverage. Galbo’s confidence in the stock is partly attributed to the company’s consistent innovation, which has historically driven over half of the U.S. sales growth. In particular, recent innovations have yielded significant growth, with products like Monster Zero Sugar and Ultra Strawberry Dreams being key contributors. The expectation that Monster Beverage will continue to expand its product lines and unveil new offerings in 2024 further underpins the optimistic stance.
Additionally, Galbo notes the solid U.S. sales growth as shown by Nielsen data, which indicates a healthy demand trajectory for Monster Beverage. The company’s strategic moves, such as the acceleration of share repurchases, also play a role in the Buy rating. Furthermore, a favorable commodity pricing environment, especially with lower aluminum costs, suggests a potential improvement in gross margins. This financial landscape, coupled with the company’s robust innovation pipeline and sales growth, sets a favorable backdrop for Monster Beverage’s stock performance in 2024, justifying the Buy recommendation and a price objective of $65.00.
According to TipRanks, Galbo is a 3-star analyst with an average return of 3.9% and a 53.19% success rate. Galbo covers the Consumer Defensive sector, focusing on stocks such as UTZ Brands, WK Kellogg Co, and Tyson Foods.
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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:
- Monster Beverage price target raised to $62 from $57 at UBS
- Monster Beverage Announces Webcast Details for Investor Meeting/Business Update January 16, 2024
- Monster Beverage put volume heavy and directionally bearish
- KO, KDP, CELH See a Jump in Soda Sales
- Monster Beverage price target raised to $58 from $50 at Piper Sandler
