Monster Beverage is called a beverage stock standout by Argus
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Argus reiterated a Buy rating on Monster Beverage (NASDAQ:MNST) on Wednesday on the view that the shares remain attractive despite investor concerns about rising input costs and higher freight rates.
Analyst John Staszak pointed to the beverage company's impressive history of growth that includes both five-year compounded annually sales and EPS growth rates in the 13% to 15% range. Looking ahead, MNST is seen benefiting from a transformative transaction with Coca-Cola Corp and has a clean balance sheet is clean in the high interest rate environment. While MNST's valuations are on the rich side, Staszak and team believe that the stock merits a premium due to the growth history and outlook.
"Monster focuses on one of the most rapidly growing beverage segments, energy drinks. In addition, management is working to improve market share and margins in rapidly growing emerging markets."
Shares of Monster Beverage (MNST) traded flat in the premarket session at $103.81. The year-to-date return is +2.44%.
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