Monster Beverage price target raised to $56 from $50 at Roth Capital

Roth Capital analyst Sean McGowan raised the firm’s price target on Monster Beverage (MNST) to $56 from $50 and keeps a Buy rating on the shares. The company’s Q1 results missed consensus estimates, but much of the revenue miss was due to currency shifts, and its gross margin was much stronger than expected, the analyst tells investors in a research note. The energy drink category has returned to consistent growth in the U.S., and investors have responded, Roth notes, adding that it is raising its adjusted EBITDA estimates to reflect stronger margins.