Why Monster Beverage (MNST) Stock Is Jumping in After-Hours Trading Today

NEW YORK (TheStreet) -- Monster Beverage (MNST) was gaining 26.6% to $90.71 after-hours Thursday after Coca-Cola (KO) announced it will take a 16.7% stake in the company.

Coca-Cola’s stake in the company is part of a new long-term strategic partnership between the two beverage companies. Under the new partnership, Monster will transfer ownership of its non-energy drink brands to Coca-Cola, and Coca-Cola will transfer its energy drink brands to Monster. Coca-Cola will also become Monster’s “preferred distribution partner” worldwide.

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TheStreet Ratings team rates MONSTER BEVERAGE CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate MONSTER BEVERAGE CORP (MNST) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."

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