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RBC highlights Monster Beverage stock prospects, endorses new Chief Growth Officer

EditorEmilio Ghigini
Published 2024-06-14, 07:18 a/m
MNST
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On Thursday, RBC (TSX:RY) Capital maintained its positive stance on Monster Beverage Corporation (NASDAQ:MNST) stock, reiterating an Outperform rating and a $65.00 price target. The endorsement follows the company's annual shareholder meeting, where management discussed various aspects of the business, including market pressures and growth opportunities.

During the meeting, Monster Beverage's management acknowledged the challenges facing the energy drink category in U.S. convenience stores but expressed optimism about the brand's performance in other retail channels and its international expansion. The company also confirmed a roughly 5% price hike on its core products, which took effect in November, aligning with RBC Capital's previous expectations.

The recent appointment of Rob Gehring as Chief Growth Officer was highlighted as a particularly bullish development for Monster Beverage. Gehring's extensive background with The Coca-Cola Company (NYSE:KO) and its bottlers is anticipated to bring a valuable perspective to the energy drink maker.

RBC Capital's analysis suggests that the current dip in Monster Beverage's stock presents a buying opportunity for investors. The firm's maintained price target of $65.00 reflects confidence in the company's strategic direction and potential for future growth.

In other recent news, Monster Beverage Corporation reported record net sales of $1.9 billion in the first quarter of 2024, an 11.8% increase from the previous year. The company also recently completed a substantial $3 billion share buyback, purchasing approximately 5.4% of its outstanding common stock. In terms of leadership, Co-CEOs Rodney Sacks and Hilton Schlosberg are preparing for a transition in 2025.

Several financial firms have revised their outlooks on Monster Beverage. Goldman Sachs (NYSE:GS) maintained a Buy rating with a steady price target of $66.00, while Deutsche Bank (ETR:DBKGn) reduced its price target to $63, and Jefferies lowered its target from $68.00 to $61.00. Additionally, Roth/MKM maintained a Neutral rating but lowered the shares target from $59.00 to $56.00, and BMO (TSX:BMO) Capital Markets reduced the price target from $58.00 to $56.00.

These adjustments come amid concerns about a slowdown in the company's core US energy drink sales and higher anticipated costs. Despite these challenges, the firms generally maintain confidence in Monster Beverage's growth trajectory, especially given the company's robust international market presence and expansion efforts. These are among the recent developments for Monster Beverage Corporation.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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