Monster Beverage: Strong prospects for fast-growing beverage company; initiated with a Buy at Argus; tgt $145
Argus initiates MNST with a Buy and price target of $145 as the co has an impressive history of growth, with five-year compound annual sales and EPS growth rates in the 13-15% range. Looking ahead, firm expects co to sustain its growth in the U.S. and to increase international sales and margins. Co should also benefit from a transformative transaction with Coca-Cola Corp. (KO). Co's balance sheet is clean. Co's valuations are on the rich side, but firm believes that the stock deserves a premium given co's growth history and outlook.