Coca-Cola (KO) yesterday announced plans to launch its first ever energy drink in Europe, Wells Fargo analyst Bonnie Herzog tells investors in a research note titled "KO Unleashes Its Own 'Monster' with Coke Energy in Europe." Importantly, the announcement came despite the fact that Coca-Cola's ongoing arbitration with Monster Beverage (MNST) has not concluded, says the analyst. She believes this "clearly signals" that Coca-Cola is increasingly confident that it will prevail in the arbitration process. Herzog views the development as a negative for Monster "given that a Coca-Cola-branded energy drink represents yet another source of competition." She thinks the risks are increasing for Market Perform-rated Monster "from multiple vantage points" and maintains his cautious view on the stock.

Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.  1... To see the rest of the story go to thefly.com. See Story Here

Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.  1... To see the rest of the story go to thefly.com. See Story Here

Truist downgraded Monster Beverage to Sell from Buy with a price target of $46, down from $65.

JPMorgan analyst Andrea Teixeira downgraded Monster Beverage to Neutral from Overweight with a price target of $59, down from $66, ahead of the company's Q1 earnings report on May 8. While the shares have already sold off, there are limited catalysts to the upside at this point as "long-hoped for potential price increases somehow lost their attractiveness" due to the latest run up in aluminum prices and an already-stretched lower income consumer, the analyst tells investors in a research note. Moreover, the firm says Monster's tracked and untracked channel trends are still challenged and it appears that household penetration and buy rates are pressured.