Needham analyst Gerald Pascarelli has maintained their neutral stance on MNST stock, giving a Hold rating today.
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Gerald Pascarelli has given his Hold rating due to a combination of factors that reflect both the strengths and challenges facing Monster Beverage. The company has demonstrated strong performance, surpassing expectations in revenue, gross margin, and earnings per share, which has generated optimism among investors. Additionally, Monster Beverage is benefiting from its execution and the robust growth of the energy drink category, which is one of the most appealing segments in consumer staples.
However, Pascarelli notes that while the company is currently performing well, there are challenges on the horizon. The increasing Midwest Premium and the anticipated tougher comparisons looking towards 2026 present potential hurdles. Despite these challenges, the expected minimal impact from price increases and the introduction of new innovative products are expected to support the company’s position. Therefore, while the outlook remains positive, these factors contribute to the decision to maintain a Hold rating.
In another report released today, TD Cowen also maintained a Hold rating on the stock with a $74.00 price target.
Based on the recent corporate insider activity of 34 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of MNST in relation to earlier this year.