Goldman Sachs analyst Judy Hong downgraded Monster Beverage (MNST) to Neutral from Buy and removed the shares from her firm's Americas Conviction List. She also lowered her price target for the stock to $59 from $67. Monster closed yesterday down 4%, or $2.68, to $57.92.
The company's U.S. sales could remain softer than expected in the near term, driving downward estimate revisions, Hong tells investors in a research note. Recent Nielsen data points to a "sizable slowing" in Monster's sales growth, says the analyst.
She thinks heightened competition from Red Bull and continued growth from Bang are beginning to have a more sizable market share and sales impact on the company.
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