Monster Beverage: Buy Rating Backed by Strong Short-Term Recovery and Long-Term Growth Potential

Analyst Dara Mohsenian from Morgan Stanley reiterated a Buy rating on Monster Beverage (MNST – Research Report) and increased the price target to $70.00 from $65.00.

Dara Mohsenian has given his Buy rating due to a combination of factors that highlight both short-term and long-term growth potential for Monster Beverage. In the short term, the company is expected to benefit from a recovery in the U.S. energy drink market, supported by recent survey data and household panel insights. This recovery is anticipated to boost Monster’s market share and drive revenue growth, which is not fully reflected in current market valuations.
Long-term growth prospects are also promising, with Monster Beverage positioned to capitalize on the robust global growth of the energy drink category. This growth is driven by favorable demographics, such as a younger consumer base, and the company’s pricing power. Additionally, Monster’s international market strength, evidenced by recent scanner data and share gains, further supports the optimistic outlook. As a result, Mohsenian has raised his earnings estimates and price target for Monster Beverage, reinforcing his Buy recommendation.

Based on the recent corporate insider activity of 39 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.