Robert Moskow, an analyst from TD Cowen, maintained the Hold rating on Monster Beverage. The associated price target was raised to $68.00.
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Robert Moskow has given his Hold rating due to a combination of factors that present both opportunities and challenges for Monster Beverage. The company reported strong sales and an EPS beat in the second quarter, with management expressing optimism about the U.S. energy drink market’s health. They are considering selective price increases and a reduction in promotional allowances to counteract rising aluminum costs, which could potentially enhance sales and margins.
Despite these positive indicators, the sales growth was slightly below consensus expectations, and while the gross margin exceeded expectations, the EBIT margin was merely in line. Additionally, while July sales showed impressive growth, the sustainability of this trend remains uncertain. These mixed signals contribute to the Hold rating, as the potential for upside is tempered by the need for cautious optimism regarding future performance.
According to TipRanks, Moskow is a 3-star analyst with an average return of 1.5% and a 44.40% success rate. Moskow covers the Consumer Defensive sector, focusing on stocks such as Campbell Soup, Kraft Heinz, and Celsius Holdings.
In another report released today, UBS also maintained a Hold rating on the stock with a $67.00 price target.