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Investing.com - RBC Capital has raised its price target on Monster Beverage (NASDAQ:MNST) to $68.00 from $64.00 while maintaining an Outperform rating on the energy drink maker’s stock. The new target falls within the broader analyst range of $50-$74, with the stock currently trading at $66.36.
The price target increase follows what RBC Capital described as an "exceptionally strong print" for Monster Beverage, which demonstrated robust topline momentum and strong margins in its latest financial results. InvestingPro data shows impressive gross profit margins of 54.6% and an overall financial health score of "GREAT," supported by strong cash flows and solid balance sheet metrics.
RBC Capital noted that Monster Beverage has initiated pricing conversations scheduled for later in the year, which the firm believes the category can handle, to offset costs and potential tariffs. According to InvestingPro, the company maintains more cash than debt on its balance sheet, providing flexibility for such strategic initiatives. Get access to 10+ additional exclusive ProTips and comprehensive analysis with an InvestingPro subscription.
The firm highlighted that July sales were "exceptionally robust," implying topline acceleration across most markets and significant international strength for the beverage company.
RBC Capital stated that its overall investment thesis for Monster Beverage remains on track, adding that the company’s topline momentum is sufficient to manage the modest margin pressure it faces.
In other recent news, Monster Beverage 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 came in at $2.11 billion, beating the anticipated $2.08 billion. These earnings results highlight the company’s strong performance in the quarter. Following the earnings announcement, Morgan Stanley (NYSE:MS) raised its price target for Monster Beverage to $74 from $70, maintaining an Overweight rating. The firm noted that Monster’s earnings per share exceeded consensus estimates by 7.2%, and gross margins surpassed expectations by 115 basis points. These developments underscore the positive outlook analysts have on Monster Beverage’s financial trajectory.
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