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Investing.com - RBC Capital has raised its price target on Monster Beverage (NASDAQ:MNST) to $75.00 from $68.00 while maintaining an Outperform rating on the energy drink maker’s stock. The company’s shares, currently trading at $69.03, are approaching their 52-week high of $69.28, having delivered an impressive 31.34% return year-to-date.
The price target increase reflects RBC’s higher estimates and observations that Monster’s market share momentum has improved sequentially in recent months. According to InvestingPro analysis, the company maintains impressive gross profit margins of 55.18% and boasts a "GREAT" financial health score, though current valuations suggest the stock may be trading above its Fair Value.
RBC believes this positive momentum can continue, driven by three key factors: enhanced revenue growth management capabilities, better leveraging of the 12-ounce can format, and developing strategies to better target female consumers—a demographic where the company has historically under-indexed.
The firm’s analysis suggests Monster’s U.S. market share trends, which have been an area of debate among investors, are showing signs of improvement following concerns addressed in RBC’s June research note titled "Can Monster Regain Share?"
Monster Beverage continues to benefit from robust category growth in the energy drink market, according to RBC’s assessment of the company’s performance.
In other recent news, Monster Beverage has reported its second-quarter 2025 earnings, surpassing analyst expectations with an earnings per share of $0.52 compared to the projected $0.48. The company’s revenue also exceeded forecasts, reaching $2.11 billion against the anticipated $2.08 billion. Following this strong performance, several financial firms have adjusted their price targets for Monster Beverage. CFRA raised its target to $65, citing robust volume growth with case volumes increasing by 17.5% in the quarter. RBC Capital increased its price target to $68, highlighting the company’s strong topline momentum and solid margins. Morgan Stanley has also raised its price target to $74, noting that Monster’s earnings per share exceeded consensus estimates by 7.2% and that gross margins were better than expected by 115 basis points. These developments indicate a positive outlook from analysts regarding Monster Beverage’s recent performance.
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