Analyst Robert Moskow from TD Cowen maintained a Hold rating on Monster Beverage (MNST – Research Report) and increased the price target to $60.00 from $55.00.
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Robert Moskow has given his Hold rating due to a combination of factors impacting Monster Beverage’s performance. The company’s first-quarter sales growth, when adjusted for foreign exchange, fell significantly short of market expectations, with earnings per share missing by a small margin. This shortfall was attributed to irregular ordering patterns by bottlers in the U.S. and EMEA regions, as well as adverse weather conditions and fewer selling days.
Despite these challenges, there are positive signs such as the recovery of the U.S. energy drink category, which showed improved sales trends. Management remains optimistic about the category’s strength, viewing energy drinks as an affordable luxury for consumers. However, the strong start in April sales is somewhat clouded by the possibility that these figures were inflated due to shipments shifted from the first quarter. Overall, while there are encouraging developments, the uncertainties and mixed results justify a Hold rating.
In another report released today, Piper Sandler also maintained a Hold rating on the stock with a $54.00 price target.
Based on the recent corporate insider activity of 35 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of MNST in relation to earlier this year.