Today's Overall Ratings: Up: 24 | Down: 27 | New: 38 Goldman Sachs reiterated its Conviction Buy List rating on Monster Beverage (NASDAQ: MNST) and raised its price target from $64 to $70, suggesting 20% upside. The firm said energy drink is the future of US soft drinks.
They raise 2013E/2014E EPS estimates to $2.36/$2.85 from $2.34/$2.75, as new analysis of the US liquid refreshment beverage (LRB) industry points to stronger energy drink category growth than they previously estimated.
"MNST is the proven winner in the energy drink category with strong brand loyalty, highly effective marketing programs, and an expanding brand portfolio with Monster Rehab (tea/energy brand) that is adding another leg to MNST's growth," the firm said.
Goldman said MNST could be a $84 stock in two years, driven by EPS growth.
On M&A, Goldman continue to assign an M&A ranking of 2 "as the energy drink category is becoming too large and too profitable for large global beverage companies to ignore."
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