Jefferies cut its estimates and price target on Monster Beverage Corporation
However, the company’s encouraging October gross sales update should pacify investors concerns over topline. The
“We est. a ~17% like-for-like gross sales increase (helped by Mutant sell-in), or ~14% in the US and ~25% in int'l, each of which should be viewed favorably by investors,” analyst Kevin Grundy wrote in a note.
Among other positives,
That said, Grundy cut his FY16-18 EPS est. by about 4 percent, to reflect the quarterly miss and higher levels of investment.
The analyst now expects FY 2016/FY 2017 EPS at $3.74/$4.62 versus prior estimate of $3.93/$4.82.
“We remain favorably predisposed to MNST, though remain on the sidelines following a choppy 3Q, given the stock's premium multiple at 32x EV/ULFCF (vs. 21.5x staples avg),” Grundy added.
Grundy maintained his Hold rating, but cut the price target by $15 to $160.
|Sep 2016||Credit Suisse||Initiates Coverage on||Outperform|
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