Morgan Stanley has reiterated its bullish stance on Monster Beverage (MNST.US) as the company heads into the new year. The bank highlighted that recent retail scan data from the U.S. and Western Europe continues to demonstrate robust performance, exceeding market expectations and standing in stark contrast to the broader consumer packaged goods industry's current downturn. Additionally, Monster Beverage has shown steady pricing trends compared to its peers.
In response, Morgan Stanley raised its revenue and earnings per share (EPS) forecasts for Monster Beverage in 2026, maintaining its "Overweight" rating, and increased its price target from $81 to $87. Analyst Dara Mohsenian noted, "Critically, in our view, Monster Beverage is entering a new phase of growth—one that is more data-driven compared to its earlier entrepreneurial culture. The company now has more advanced technology and analytical tools, as well as a stronger management team. Moreover, against the backdrop of sustained strong growth in the energy drink category, its strategic direction is becoming increasingly clear."
Mohsenian further emphasized that as synergies with the Coca-Cola (KO.US) system deepen, Monster Beverage holds significant potential for international expansion. "Monster Beverage gains access to the world's most powerful and mature non-alcoholic ready-to-drink distribution network, while bottlers acquire a high-growth, high-margin brand that adds a new highlight to their product portfolios."
Year-to-date, Monster Beverage's stock has surged 45%, reaching a record high of $77.17 last Friday. Seeking Alpha and Wall Street analysts unanimously rate the stock as a "Buy."
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