Spruce Point Capital releases report, strong sell opinion on Monster Beverage

Spruce Point Capital Management issued a detailed report entitled, “A Monster Short”, that outlines why the firm believes and estimate that shares of Monster Beverage (MNST) face up to 25% – 40% potential long-term downside risk, or approximately $34.30 – $42.80 per share. The firm says it expects entrants into Monster’s core energy drink space to vie for mindshare and consumer interest, especially as celebrity ambassadors promote other competitors. Spruce Point also believes Monster’s weakening competitive position can be seen by its generally diminished distribution claims, and feels Monster trades at an undeserved premium to Coca-Cola (KO).