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Goldman Sachs raised its price target on Monster Beverage (NASDAQ:MNST) stock to $72.00 from $67.00 on Thursday, while maintaining a Buy rating following the company’s virtual annual shareholder meeting. The stock, currently trading at $63.69, has shown impressive momentum with a 21% gain year-to-date. According to InvestingPro data, Monster maintains a "GREAT" financial health score of 3.17 out of 5.
The investment bank cited management’s "upbeat and constructive tone" during the meeting, identifying stepped-up innovation and potential modest pressure in the second half of 2024 due to recent incremental tariffs on aluminum as key takeaways.
Goldman Sachs described Monster Beverage as "one of the most attractive growth stories in broader Staples," noting the company has meaningful room to grow gross profit dollars and improve gross margins.
The firm believes Monster can achieve this growth through a combination of incremental topline growth opportunities from strong innovation and pricing, while moderating input costs provide "a clear line of sight to GM recovery."
Goldman Sachs expects these factors to serve as positive catalysts for Monster Beverage’s stock, supporting further re-rating, and confirmed the company remains one of its top picks in the sector.
In other recent news, Monster Beverage Corporation reported its first-quarter earnings for 2025, revealing a revenue of $1.85 billion, which fell short of the forecasted $1.97 billion. Despite this, the company’s earnings per share (EPS) of $0.45 nearly matched the forecast of $0.46, reflecting a 7.4% year-over-year increase. The company has been facing market share challenges in the U.S., with the Monster Green Can losing ground as consumers shift to lower sugar options. However, international performance has been stronger, with Monster gaining market share in 73% of the markets discussed in their earnings calls, particularly in the EMEA region.
Analyst firms have reacted to these developments with TD Cowen raising its price target for Monster Beverage to $60, maintaining a Hold rating, and JPMorgan increasing its price target to $64 while keeping a Neutral rating. These adjustments come despite Monster’s first-quarter results showing weaker sales and higher expenses, although gross margins exceeded expectations. Monster’s management remains optimistic about the energy drink category’s growth potential, citing improved sales trends since the start of the year.
RBC continues to maintain an Outperform rating on Monster Beverage, anticipating a recovery by 2026 despite recent market share losses. The company is focusing on broadening its marketing strategies and launching new products to regain its market position. Investors and analysts will be closely monitoring Monster Beverage’s ability to navigate these challenges and capitalize on growth opportunities in the coming quarters.
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