By Christiana Sciaudone
Investing.com -- Looks like we know what's fueling those people working extra hours during lockdowns.
Monster Beverage (NASDAQ:MNST) rose more than 5% after beating estimates and reporting an improvement in sales in the latter half of the second quarter with cities reopening and consumers buying more energy drinks to consume at home.
The company’s e-commerce, club store, mass merchandiser and grocery and related business continued to increase in the quarter while its food service on-premise business, which is a small channel for the company, remained challenged, Monster said in a statement.
Bank of America (NYSE:BAC) also lifted its estimates for Monster, which it rates a buy, according to Seeking Alpha. Analyst Peter Galbo cited the company's "reaccelerating growth" as warranting a higher valuation multiple. He raised the multiple to 37 times 2021 estimated earnings per share from 34 times, and bumped the price target to $95 from $80.
Net sales for the quarter were $1.09 billion compared with $1.10 billion in the same period last year, and versus the $1 billion average analyst estimate. Earnings per share of 59 cents beat the 48-cent forecast.