Stifel views Monster Beverage (NASDAQ:) as a likely buyer of energy drink company Bang, Stifel analysts said in a note to clients on Monday.
Bang filed for bankruptcy in October 2022 and, according to court documents, plans to sell the business explained the analysts.
“We view Monster as best-positioned to acquire Bang given it is the largest creditor in bankruptcy and co-rights holder to a 5% perpetual royalty/license for use of the Bang beverage trademark,” they wrote.
“Relatedly, Monster is challenging Bang’s ability to transfer the Bang trademark license to an acquirer, which, if successful, would give Monster near total control over Bang’s future,” they added. “While we have no knowledge of discussions, we think Monster acquiring Bang would be modestly accretive to EPS and, strategically, additive to its retail shelf-space and provide some U.S. manufacturing optionality.”
Following Monster’s stock split on March 28, Stifel moved its price target on the company’s shares to $61.