NEW YORK (TheStreet) -- Shares of Monster Beverage Corp. (MNST) are climbing higher by 21.23% to $91.16 on heavy volume at the start of trading on Friday, after the company announced it has entered into a long-term strategic partnership with The Coca-Cola Company (KO).
The companies announced on Thursday that they will be working together to “accelerate growth for both companies in the fast-growing, global energy drink category.”
Coca-Cola will acquire a 16.7% ownership interest in Monster, and will transfer ownership of its worldwide energy business to Monster.EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners. Click here to see the holdings for FREE
Monster will issue Coca-Cola shares of common stock and transfer its non-energy business to the company.
Shares of Coca-Cola are up 2.1% to $41.06 this morning.
Separately, 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."