Red Bull co-founder’s death could benefit Monster Beverage, says Stifel

Stifel analyst Mark Astrachan thinks Red Bull’s early November executive announcement following the October death of Red Bull co-founder Dietrich Mateschitz suggest that 51% shareholders the Yoovidhya family are exerting greater control, which "could result in a more rational-acting and profitable global energy drink industry" and benefit Monster Beverage. In support of the view, the firm notes that Mateschitz’s son, a potential successor who inherited his father’s 49% ownership stake, stepped away from an operational role in the process. The firm, which notes that the energy drink category is a duopoly, thinks more consistent pricing and profitability would expand Monster’s valuation multiple and it keeps a Buy rating and $133 price target on Monster Beverage shares.