But Hansen (HANS) shares look topped out once again. At the very least, they're well above the average 12-month target of 37.25 held by analysts. "There's not a lot of margin for error in this market environment with that valuation," Van Winkle says. He adds that a takeout premium has likely been embedded into Hansen shares, with many anticipating that Coca-Cola (KO) could make a bid for the entire company.

gave good returns

It's the little stock that could.

Beverages

Adami said Hansen Natural (HANS) could be a takeover target.

Hansen Natural (HANS) was downgraded by Canaccord Adams from buy to hold.

Goldman Sachs said it is downgrading Hansen (HANS) to Neutral from Buy following disappointing Q1 earnings. Believe business investment was primary driver of the earnings miss, and see potential to pressure margins going forward. Sales of Monster were up 36%, also disappointing compared to expectations in the 45%-50% range. Price target at $37.

Hansen Natural, maker of the Monster energy drink, said it would buy back up to $200 million worth of common stock a day after shares of the company had touched a 52-week low. Under the previous $200 million authorization, all but $60 million worth of stock has been repurchased.

"We expect investors to be pleased by the decision to utilize the strong balance sheet to benefit shareholders," Judy Hong, beverage analyst at Goldman Sachs, said.

The stock trades for 12x cash flow.

Goldman Sachs said it is upgrading Hansen Natural (HANS) to Buy from Neutral based on solid energy drink outlook, market share gains, strong pricing and relative valuation. See recent weakness creating attractive entry point. Price target trimmed to $50 from $54.

One worrisome data point is Los Angeles, which accounts for 5% of U.S. energy-drink sales and some 7% of Hansen's sales. Sales growth there for energy drinks has slowed to just 5%, and in February, Hansen sales fell 5.6% after growing 5.9% the previous month. Calls to random Costco stores, including Seattle and Waltham, Mass., also show that some no longer carry Monster Energy.

Enter a slew of new rivals into an already-crowded market. January marked the rollout of Rockstar Roasted, a coffee-flavored offering from Rockstar, which also sells an herbal beverage. Beverage Digest sees Full Throttle Coffee, from Coca-Cola (KO), arriving this year. Starbucks (SBUX), too, is grasping for growth. Recently, industry leader Red Bull trademarked the name Black Bull, sparking rumors of a new coffee drink. Says Sicher: "Red Bull is very smart and [has] seen the success of Monster Java and Rockstar Roasted." Coke and Red Bull declined comment.

Hansen has repeatedly defied the bears, and Rodney Sacks, its energetic chief, emphasizes that sales of other energy drinks in Los Angeles were off sharply, too. "The whole market is still up over 20%. If you take our brands in the four weeks, we're up 52% nationally." Los Angeles is "significant" but "mature," he says. Sales were up sharply in Dallas, on the other hand. Sacks had "no knowledge" of Costco stores not selling Monster, and maintained that lines like Lo-Carb, Khaos and Assault were growing swiftly, offsetting any slowdown in the flagship drink. And Rockstar and others "are simply followers. We have far greater selection, we have first-mover advantage, and our products taste better."

Still don't understand the stagnation.

FAD

kept it .. kept it... for a YEAR@!! then after I sold it .. it went up.

Too Volitile

Highlights the continuing crooked relationship between banks and the stocks they supposedly cover with objectivity. All the analysts see unlimited potential (and I-banking business), while ignoring any margin pressure or competition.

estimates too high, stock too hot

bought it on a dip

I just don't get it. They don't make anything like a Coke or a Pepsi. Nothing that people are going to drink for the rest of their lives.