- Morgan Stanley analyst Dara Mohsenian explains why last week's drop in Monster Beverage (MNST +3.7%) sets up a buying opportunity,
- "We view the recent 15% drop in Monster's stock over the last two trading days as a compelling buying opportunity, with valuation now much more reasonable following a large 43% stock jump in 2017," he writes.
- "While Q4 results were much worse than expected, we view the outsized stock reaction as overdone, particularly given some silver linings that could emerge post disappointing results in terms of a potential margin recovery at some point with potential price increases, as well as a potential increase in investors' strategic focus for Monster," Mohsenian adds.
- MS has an Overweight rating and $67 price target on Monster.