By Carly Forster
Monster Beverage Corporation (MNST) has been performing well despite legal issues.
Monster Beverage Corp in the News
Monster Beverage Corp (NASDAQ:MNST) has been slapped with a lawsuit from the musical group, The Beastie Boys, due to the use of some of the bands songs in a marketing YouTube video from a snowboarding event in 2012. The music group is demanding a total sum of $2 million in copyright damages. Monster argues that they were under the impression that they had permission to use the bands songs and, once they were aware they did not, they immediately took the video down. The company said in a statement, “When Monster was notified by the Beastie Boys that the company was mistaken in its belief that it had the proper authorization, Monster immediately removed the video from the Internet […] This lawsuit is solely about what, if anything, Monster must pay to the Beastie Boys because of Monster’s good faith mistake. In Monster’s view the Beastie Boys are demanding sums that are far beyond any reasonable fair market value.”
Despite Monster Beverage Corp (NASDAQ:MNST)’s legal matter with the music group, the beverage company’s stock has been quickly picking up. This is due to the company’s profit increase, solid financial position, expanding profit margins, and a notable record of earnings per share growth.
What Does This Mean for Monster Beverage Corp’s Stock?
Credit Suisse analyst Michael Steib gave the beverage company an Outperform rating with a price target of $82 on June 4. He based his rating on what he believes to be some of the best top- and bottom-line increase in the CPG sector, rationalizing the stock’s high valuation. Steib has a +5.2% average return on all stock recommendations and a 56% success rate according to TipRanks.
On June 3, Goldman Sachs analyst Judy Hong also reiterated a BUY rating for Monster Beverage Corp (NASDAQ:MNST) with an $85 price target. Hong has an +8.3% average return on all stock recommendations and an 82% success rate. Her average return on Monster Beverage Corp alone is +7.8%.
Conclusion
Despite Monster Beverage Corp (NASDAQ:MNST)’s legal issues, analysts agree the company continues to perform well and believes that now is the time to add more shares to their portfolio.
Carly Forster writes about stock market news. She can be reached at [email protected]
