Downgrade Alert for Monster Beverage Corporation (MNST)

Shares of Monster Beverage Corporation (MNST) are down nearly one percent to $66.42 in pre-market trading Monday after the company was  downgraded to ‘Neutral’ from ‘Buy’ at UBS AG (UBS).

Monster shares closed at $66.67 on Friday afternoon ; the stock is down 11.84% from its 52-week high set on Feb 24, 2014 of $75.63.

MNST has been the subject of a number of other recent research reports. Analysts at Morgan Stanley (MS) lowered their rating on shares of Monster Beverage Corp. from ‘Overweight’ to ‘Equal-weight’ in a research note July 21. Separately, analysts at Stifel Nicolaus maintained a ‘Buy’ rating on shares of the company in a research note on Wednesday, July 16th. Finally, analysts at Wells Fargo (WFC) and BTIG Research initiated coverage on MNST in a report released on Thursday, June 19th. The firms set an ‘Outperform’ and ‘Buy’ rating on the stock, respectively.

Monster Beverage shares, which currently have an average 3-month trading volume of 1.3 million shares, trade at a trailing-12 P/E of 31.47, a forward P/E of 23 and a P/E to growth ratio of 1.75. The median Wall Street price target on the company’s stock is $80 per share with a high target of $90 per share.

In terms of profitability, Monster’s trailing-12 profit margin currently stands at more than 16% while operating margin is at 26.85%. The $11.2 billion market cap company reported $750 million in cash vs. $0 in debt in its most recent quarter.

Monster Beverage develops, sells, and distributes alternative beverage category beverages in the United States and internationally. The company was founded in 1985 and is headquartered in Corona, California.

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