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Investing.com - CFRA raised its price target on Monster Beverage (NASDAQ:MNST) to $65.00 from $60.00 while maintaining a Hold rating following the company’s strong second-quarter performance. The energy drink giant, currently valued at $63.3 billion, has seen its stock surge over 30% in the past six months, though InvestingPro analysis suggests the stock is trading above its Fair Value.
The research firm cited Monster’s unexpectedly robust volume growth as the primary driver for the target increase, with case volumes jumping 17.5% in Q2, marking a significant acceleration from previous quarters.
International sales emerged as a particular bright spot, with non-U.S. net sales growing 16% year-over-year and accounting for 41% of total Q2 net sales, suggesting Monster’s global expansion strategy is gaining traction.
CFRA adjusted its earnings estimates upward, projecting adjusted EPS of $1.90 for 2025 (up from $1.80) and $2.15 for 2026 (up from $2.00), while applying a 2026 P/E multiple of 30.2x, which represents a discount to the stock’s five-year average forward P/E of 34.6x.
Despite the positive volume trends, CFRA maintained its Hold rating, noting ongoing concerns about Monster’s declining U.S. market share, which has dropped 370 basis points to 26.8% over the past five years, though the firm acknowledged that Monster’s international growth potential may have been underestimated.
In other recent news, Monster Beverage reported its second-quarter 2025 earnings, surpassing analyst expectations with an earnings per share of $0.52, compared to the forecasted $0.48. The company’s revenue also exceeded projections, reaching $2.11 billion against the anticipated $2.08 billion. RBC Capital responded to this strong performance by raising its price target for Monster Beverage to $68, while maintaining an Outperform rating. Morgan Stanley (NYSE:MS) also adjusted its outlook, increasing its price target to $74 and maintaining an Overweight rating. The firm highlighted that Monster’s earnings per share exceeded consensus estimates by 7.2%, and gross margins beat expectations by 115 basis points. These developments reflect robust topline momentum and strong margins for the company.
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