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On Friday, JPMorgan analyst Andrea Teixeira updated the firm’s stance on Monster Beverage shares, increasing the price target to $64 from $60 while maintaining a Neutral rating. The adjustment follows Monster Beverage’s first-quarter earnings report, which revealed weaker sales and higher selling, general, and administrative (SG&A) expenses, despite better-than-expected gross margins.
Monster Beverage’s management expressed optimism that, despite a subdued performance in the first quarter of 2025, sales trends for the energy category have shown improvement since the beginning of the year. Notably, April saw a significant uptick in gross sales growth of 16.7% and 17.6% when excluding the Alcohol Brands segment, with both figures adjusted for foreign exchange neutrality (FXN). This positive momentum builds on the company’s strong market position, with Monster currently commanding a market capitalization of $58.65 billion and showing a robust year-to-date return of 14.42%.
To provide a clearer picture of the company’s performance, management also shared year-to-date sales figures, which indicated a 6.9% increase excluding the Alcohol Brands segment and a 5.8% rise including it, both FXN. Based on these insights, JPMorgan anticipates that Monster Beverage will likely exhibit low double-digit top-line growth in the second quarter and close the year with approximately 7% top-line growth, aligning with InvestingPro’s revenue growth forecast. The stock is currently trading near its 52-week high of $61.29, with 12+ additional key insights available through InvestingPro’s comprehensive analysis tools.
The updated outlook from JPMorgan comes after a one-on-one call with Monster Beverage’s Vice Chairman and Co-CEO Hilton Schlosberg, CFO Tom Kelly, and the new SVP of Investor Relations and Corporate Development Mark Astrachan. These discussions took place subsequent to the company’s earnings call and have been instrumental in informing JPMorgan’s revised projections for Monster Beverage’s financial model.
In other recent news, Monster Beverage Corporation (NASDAQ:MNST) reported its first-quarter 2025 earnings, highlighting a revenue of $1.85 billion, which fell short of the expected $1.97 billion. Despite the revenue miss, the company’s earnings per share were $0.45, closely aligning with the forecast of $0.46. The company attributed part of its revenue challenges to foreign currency exchange rates, which negatively impacted sales by $57.3 million. Monster Beverage’s gross profit percentage rose to 56.5% from 54.1% in the previous year, while operating income increased by 5.1% to $569.7 million. The company expressed optimism about future growth, with April 2025 sales estimated to be 16.7% higher than the previous year. Notably, Monster Beverage continues to expand its international market presence, with significant sales growth in regions such as China and South Korea. Additionally, the company is actively exploring pricing opportunities and expanding its product lineup globally. In terms of market competition, Monster Beverage remains a leader in several international markets, despite facing intense competitive pressures.
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