Analyst Robert Moskow from TD Cowen maintained a Hold rating on Monster Beverage (MNST – Research Report) and keeping the price target at $55.00.
Robert Moskow has given his Hold rating due to a combination of factors impacting Monster Beverage’s performance. The company reported a strong fourth-quarter sales growth on a foreign exchange-neutral basis, surpassing market expectations. However, the earnings per share fell short due to higher taxes and other below-the-line items, which tempered the overall positive sales performance.
Management expressed optimism about the improving trends in the U.S. energy drink market, highlighting recovery in convenience store sales and gains in market share. Despite these positive indicators, Monster’s January 2025 sales projections were slightly below consensus, affected by adverse weather conditions that led to distributor and retailer closures. Additionally, while management downplayed competitive threats from brands like Celsius and Alani Nu, the potential market dynamics and niche appeal of these competitors remain considerations. These mixed factors contribute to the Hold rating, balancing the positive sales momentum with the challenges faced in the market.
In another report released today, Piper Sandler also maintained a Hold rating on the stock with a $51.00 price target.