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Investing.com - Morgan Stanley (NYSE:MS) has raised its price target on Monster Beverage (NASDAQ:MNST) to $74.00 from $70.00 while maintaining an Overweight rating on the stock. The energy drink giant, currently trading at $60.80 with a market capitalization of $59.29 billion, is showing strong momentum with a 30.5% price return over the past six months. InvestingPro analysis indicates the stock is trading slightly above its Fair Value.
The firm cited Monster’s second-quarter earnings report that exceeded expectations, with earnings per share coming in 7.2% above consensus estimates and gross margins beating expectations by 115 basis points. InvestingPro data reveals impressive gross profit margins of 54.64% and an excellent financial health score of 3.14, rated as "GREAT." Additional insights are available in the comprehensive Pro Research Report, which covers over 1,400 US stocks.
Morgan Stanley highlighted Monster’s robust July sales growth of 23% excluding foreign exchange and alcohol, compared to the firm’s low double-digit forecast for the third quarter. The company also delivered 11.1% global organic sales growth in Q2, driven by international sales that outperformed consensus estimates.
The research note mentioned potential U.S. price increases for the fourth quarter, which could help offset tariff pressures. Morgan Stanley indicated that Monster is partially hedged on the Midwest premium that has been impacted by tariffs.
Following the Q2 results, Morgan Stanley raised its fiscal year 2025 and 2026 earnings per share estimates by 2.5% each, with the new price target based on approximately 26 times fiscal year 2026 enterprise value to EBITDA.
In other recent news, Monster Beverage Corp. reported its second-quarter 2025 earnings, surpassing analyst expectations. The company achieved an earnings per share (EPS) of $0.52, exceeding the forecasted $0.48. Additionally, Monster Beverage’s revenue reached $2.11 billion, surpassing the anticipated $2.08 billion. These results reflect a positive performance for the company in this period. Analysts had projected lower figures, highlighting the company’s ability to outperform market expectations. The earnings and revenue achievements are significant developments for Monster Beverage. These recent developments underscore the company’s strong financial performance in the second quarter of 2025.
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