Monster Beverage Has Tools to Handle Cost Pressures, RBC Says

MT Newswires Live02-28

Monster Beverage (MNST) has multiple ways to handle cost pressures and should continue on its growth trajectory, RBC Capital Markets said in a Friday note.

"We believe MNST has multiple levers to deal with these headwinds," the report said, pointing among others to revenue growth management, productivity, and pricing.

"We have held an Outperform on MNST for over 10 years due

to duration of its growth and nothing we saw in the 4Q release changes that view," it added.

Positives for its Q4 performance included "exceptionally" strong revenue, driven by its international markets, the note said.

On the flip side, Monster's profitability fell short of expectations, with gross margin shrinking slightly to 55.5%, contrasting with the consensus of a slight increase, the report said.

Price: 85.97, Change: -0.69, Percent Change: -0.80

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