Monster Beverage’s Sales Slowdown and Sealed Air’s CEO Ouster: Major Analyst Cuts
Overview
Investing.com — This article provides a comprehensive recap of the latest analyst cuts that investors may have missed. It highlights downgrades for Monster Beverage, Morgan Stanley, FMC, CubeSmart, and Sealed Air. Subscribers of InvestingPro received this news first, ensuring they never miss another market-moving headline.
Monster Beverage Downgraded to Neutral
Monster Beverage (NASDAQ:) was downgraded to Neutral from Overweight by Piper Sandler. The analyst firm also reduced its price target from $63 to $50, citing accelerating sales declines. In their recent fall survey of teenagers, Piper Sandler identified potential challenges for the company in the long run as Monster underperformed with this demographic.
Piper Sandler pointed out that Monster Beverage is experiencing a slowdown in its retail sales growth in the US, excluding Bang Energy. The latest data shows a decrease in retail sales growth from 8.9% to 5.8%. Sales of Monster Energy, one of the company’s key products, also saw a notable decrease from 14.8% to 3.7% in the most recent four weeks.
Piper Sandler expressed caution due to the current slower momentum in US scanner data and the slower rate at which teens are adopting the brand. However, they acknowledged the strength of Monster Beverage’s balance sheet. Despite the downgrade, the stock saw a slight increase in the regular session, trading at $50.46.
Sealed Air Downgraded to Neutral after CEO Ouster
Sealed Air (NYSE:) was downgraded to Market Perform from Outperform by William Blair after CEO Ted Doheny was ousted from his position. The company appointed COO Emile Chammas and CFO Dustin Semach as interim co-CEOs. William Blair mentioned intense external pressure and poor stock performance as contributing factors to the CEO’s removal.
The analysts anticipate a period of uncertainty for Sealed Air and await a better entry point and fundamentals before recommending new purchases of the stock. Despite the downgrade, the stock saw a 6.4% increase, trading at $30.42.
FMC Cut at 3 Firms after Guidance Cut
FMC Corp (NYSE:) experienced a more than 13% drop in its shares after issuing a surprise profit warning for Q3. Following this announcement, three Wall Street firms downgraded the company to neutral-equivalent ratings. Morgan Stanley lowered its rating to Equalweight from Overweight, BofA Securities shifted to Neutral from Buy, and Goldman Sachs also downgraded to Neutral.
These downgrades were influenced by concerns about FMC’s outlook for 2024 and acknowledgment of previous mistakes in their assessments. After the decline on Monday, FMC’s shares continued to fall, trading at $55.43.
CubeSmart Downgraded at Wells Fargo
Wells Fargo downgraded CubeSmart (NYSE:) to Equal Weight from Overweight with a price target of $37.00. The analysts expressed concerns about the company’s 2023 guidance and 2024 consensus estimates. Following the downgrade, CubeSmart’s shares fell more than 2% to $34.21.
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