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Why Shares Of Monster Beverage Corp. (MNST) Are Down Today
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Shares of Monster Beverage Corporation (MNST - Free Report) fell Monday after analysts at Wells Fargo (WFC - Free Report) downgraded the stock to “market perform” from “outperform”. The downgrade stemmed from expectations of weak second revenue growth, as well as a delayed release of the company Mutant and Hydro drinks in the fourth quarter.
In an analyst note, Wells Fargo said it still had “a favorable outlook in the long term”, but added “over the short term we have concerns given soft results in Q2 and delays in launching new innovation”. The company’s partnership with Coca-Cola (KO) last year has helped to expand its reach in the U.S. and internationally. Still though, Monster’s growth may be stunted outside the U.S. by macroeconomic challenges, a few territorial disputes with Coca-Cola, and a disappointing introduction in China, the firm also noted.
MNST was down more than 3.5% in late afternoon trading. The company has been a consistently solid performer over in the last year or so, but the downgrade from WFC hit the stock hard. If it is able to report better than expected sales and earnings numbers, the stock could see a jump higher. Its next earnings report though isn’t scheduled until August, so investors will have to wait to see those results.
Year-to-date Monster Beverage Corp. is up nearly 5%, and is currently a Zacks Rank #3 (Hold).
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Why Shares Of Monster Beverage Corp. (MNST) Are Down Today
Shares of Monster Beverage Corporation (MNST - Free Report) fell Monday after analysts at Wells Fargo (WFC - Free Report) downgraded the stock to “market perform” from “outperform”. The downgrade stemmed from expectations of weak second revenue growth, as well as a delayed release of the company Mutant and Hydro drinks in the fourth quarter.
In an analyst note, Wells Fargo said it still had “a favorable outlook in the long term”, but added “over the short term we have concerns given soft results in Q2 and delays in launching new innovation”. The company’s partnership with Coca-Cola (KO) last year has helped to expand its reach in the U.S. and internationally. Still though, Monster’s growth may be stunted outside the U.S. by macroeconomic challenges, a few territorial disputes with Coca-Cola, and a disappointing introduction in China, the firm also noted.
MNST was down more than 3.5% in late afternoon trading. The company has been a consistently solid performer over in the last year or so, but the downgrade from WFC hit the stock hard. If it is able to report better than expected sales and earnings numbers, the stock could see a jump higher. Its next earnings report though isn’t scheduled until August, so investors will have to wait to see those results.
MONSTER BEVERAG Price
MONSTER BEVERAG Price | MONSTER BEVERAG Quote
Year-to-date Monster Beverage Corp. is up nearly 5%, and is currently a Zacks Rank #3 (Hold).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>