Analyst Robert Moskow of TD Cowen maintained a Hold rating on Monster Beverage (MNST – Research Report), with a price target of $60.00.
Robert Moskow has given his Hold rating due to a combination of factors related to Monster Beverage’s recent financial performance and market dynamics. The company’s reported sales growth was slightly ahead of expectations, with notable expansion in gross margins due to effective pricing strategies and reduced input costs. The international segment, particularly in Latin America, exhibited strong growth, contributing significantly to the overall positive results. However, there were some areas, such as the Asia Pacific region, that experienced a slowdown in growth, which could be cause for some caution.
Despite these positives, Moskow’s rating reflects a cautious stance due to Monster Beverage’s current market share challenges in the U.S., where the company faces stiff competition from rivals like Celsius. The hesitation to increase prices in the U.S. market, as competitors have done, may indicate concerns about further market share erosion. Additionally, while Monster Beverage plans to expand gross margins and gain shelf space with new product innovations, the uncertain costs of freight remain a variable that could affect future profitability.
In another report released today, Piper Sandler also maintained a Hold rating on the stock with a $58.00 price target.
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Based on the recent corporate insider activity of 53 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of MNST in relation to earlier this year.
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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
