Monster Beverage Stock Gets a Jolt on Analyst Upgrade

MNST stock is looking at its biggest gain since March 2017

Deputy Editor
Jan 8, 2019 at 3:23 PM
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The shares of Monster Beverage Corp (NASDAQ:MNST) are popping on an upgrade from SunTrust Robinson. The brokerage firm hiked its rating to "buy" from "hold," and lifted its price target to $65 from $50. Analyst William Chappell also upped his earnings estimates for the next two years, and downplayed concerns over Coca-Cola (KO) entering the energy drink market.

Today, the equity is set to close above its 20-day moving average-- a trendline the shares have been looking up at since an analyst-induced bear gap in mid-December. Plus, the energy drink concern is pacing for its biggest one-day gain since March 2017 -- up 5.6% at $52.52, at last check. 

MNST since July 2018

Most analysts are wary of Monster stock, with half of the brokerage firms following MNST maintaining a "hold" or worse. Should the stock extend today's bounce, there's room for additional upgrades.

Options bulls are flocking to the stock today. In fact, the 5,062 calls traded represents 10 times the average intraday pace. The March 50 call has been by far the most popular today, with over 1,700 contracts exchanged. Buyers of the call expect MNST to extend its journey north of $50 in the near term.

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