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Monster Beverage (NASDAQ:MNST) maintained its Buy rating and $72.00 price target at Stifel following the company’s virtual shareholder meeting Friday. The energy drink maker, which boasts an impressive gross profit margin of 54.64% and a "GREAT" financial health score according to InvestingPro, outlined significant innovation plans for 2025 and reported continued momentum in international markets during the meeting.
Sales growth remains robust, with U.S. sales in tracked channels for the second quarter through early June increasing 9.2%, while international results rose mid-teens on a foreign exchange neutral basis. The company’s performance in global markets continues to be a key driver of its overall growth strategy, contributing to its impressive 21.18% year-to-date return and pushing the stock near its 52-week high of $64.45.
Monster highlighted upcoming cost pressure from aluminum inflation, particularly in the U.S. market, with a modest impact expected to begin in the third quarter of 2025. Stifel indicated these cost pressures are already factored into their financial estimates for the company.
The beverage maker’s innovation pipeline for 2025 represents a significant part of its growth strategy, though specific details about new product launches were not disclosed in the meeting. Monster executives also engaged in a question-and-answer session with investors during the virtual event.
Stifel maintained its positive outlook on Monster Beverage, reiterating both its Buy rating and $72 price target following the shareholder meeting and business update. The firm recently published a resumption note on the company, continuing its favorable view of Monster’s market position.
In other recent news, Monster Beverage Corporation reported its first-quarter 2025 earnings, revealing a slight miss on revenue expectations with $1.85 billion, falling short of the forecasted $1.97 billion. Despite this, earnings per share (EPS) of $0.45 closely aligned with the forecast of $0.46, marking a 7.4% year-over-year increase. The revenue shortfall was attributed to foreign currency exchange rates and bottler ordering patterns. Following these results, TD Cowen raised its price target for Monster Beverage to $60, maintaining a Hold rating, while Goldman Sachs increased its target to $72, keeping a Buy rating due to the company’s growth potential. JPMorgan also adjusted its price target to $64, citing improved sales trends in April and a positive outlook for the rest of the year. RBC remains optimistic about the company’s long-term prospects, expecting market share recovery by 2026 despite recent challenges. Monster Beverage continues to expand internationally, with particularly strong performance in the EMEA region, supporting its potential as a global mega-brand in the beverage industry.
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