Monster’s stock price is settling down today after a big bounce Thursday that came on news the company had been upgraded by an analyst for J.P. Morgan.
“While we still expect soft results for the next few quarters, we are becoming increasingly confident in improvements made to Monster’s product offering and competitive positioning, which we believe bodes well for the company as the economy improves,” analyst Monica DiCenso wrote in a note accompanying her upgrade of the stock from neutral to “overweight.”
(In stocks, unlike body mass, an overweight recommendation is good for the company. It means the analyst issuing the recommendation believes the stock price will rise.)
On the strength of the recommendation, Monster’s stock jumped $1.25 Thursday, before closing at $18.07. It ended Wednesday at $17.10.
At midday in New York today, Monster’s stock was at $18.06.
DiCenso, who put a price target of $24 a share on the stock, said in her note to investors that she believes the company “is in a better position today than in recent years to regain some market share in the U.S. and continue its international expansion.”
Monster’s revenue from its international operations has been growing steadily over the last few years. It accounts for 40 percent of the company’s 2009 revenue as of the last report. (The company will issue its financial report for the third quarter on Oct. 29. Yahoo Finance says analyst consensus is that Monster will report $216.7 million in revenues and break even on expenses.)