Monster Beverage price target lowered to $51 from $55 at UBS

UBS analyst Peter Grom lowered the firm’s price target on Monster Beverage to $51 from $55 and keeps a Neutral rating on the shares. Monster Beverage reported EPS below consensus estimates as slightly better than expected gross margin expansion was more than offset by weaker top line growth and higher selling expenses, the analyst tells investors in a research note. The quarter-to-date commentary confirms that category trends have yet to show any improvement and in fact could be deteriorating further, which suggests that Street estimates calling for high-single digit to low-double digit organic sales growth in the back half of the year could prove to be optimistic, UBS says. Investors should take a wait and see approach despite valuation that screens as attractive, the firm says.