Monster Beverage Corp. (NASDAQ: MNST) could be well-positioned to buy Bang, the energy drink brand, according to Stifel top-rated analyst Mark Astrachan. The analyst lowered Monster’s price target to $61 from $113, reflecting the beverage giant’s 2-for-1 stock split, and reiterated a Buy rating on the stock.
Astrachan noted that Bang filed for bankruptcy in October last year and its court documents suggest that it views Monster as a better suitor as it plans to sell its business given that Monster is Bang’s largest creditor in bankruptcy and is a co-rights holder of a 5% perpetual royalty when it comes to using the Bang beverage trademark. The analyst noted that he has “no knowledge of discussions,” but if Monster does go on to acquire Bang, it would be “modestly accretive” to EPS.
Analysts are bullish about MNST stock with a Strong Buy consensus rating based on 12 Buys and four Holds.
