Analyst Filippo Falorni from Citi maintained a Buy rating on Monster Beverage (MNST – Research Report) and keeping the price target at $64.00.
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Filippo Falorni has given his Buy rating due to a combination of factors that highlight Monster Beverage’s strong market position and growth potential. Despite the negative report from Spruce Point Capital, Falorni emphasizes that competition in the US energy drink market is not a new challenge for Monster Beverage. The company, along with Red Bull, has maintained a consistent market share of around 73% since 2019, indicating resilience in the face of new entrants.
Additionally, Falorni points out the significant growth opportunities in the international market, where Monster Beverage holds a 13% market share compared to Red Bull’s 30%. This presents a chance for Monster to expand its margins as it scales. Furthermore, Falorni dismisses concerns about the company’s financial reporting and accounting practices, asserting that Monster’s higher valuation is justified by its superior topline and EPS growth, as well as its net cash position.
Based on the recent corporate insider activity of 35 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of MNST in relation to earlier this year.