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Investing.com -- Stifel resumed coverage of Monster Beverage (NASDAQ:MNST) with a Buy rating and $72 price target, given the increased sales in the U.S. and strong international growth as key drivers for the energy drink maker.
The firm expects Monster’s revenue to grow 5.5% in 2025, led by high-single-digit gains overseas and a rebound in the U.S. market helped by product innovation and steady distribution.
Sales velocity, particularly in convenience stores, has picked up in recent weeks, which analysts said should support further gains this year.
“We believe the improved velocities support an acceleration in dollar sales growth through 2025 and bodes well for distribution levels going forward,” the analysts wrote, adding that Monster’s recent innovations have contributed meaningfully to overall category growth.
“We view this positively for the brands’ ability to compete against functional brands going forward.”
International markets now make up about 40% of Monster’s revenue and are outpacing domestic growth, with the firm citing market share gains in key regions.
Stifel sees overseas expansion as Monster’s most important long-term opportunity, noting the company’s global share outside the U.S. still lags its domestic position.
The firm’s $72 price target is based on a 26-times EV/EBITDA multiple using 2026 estimates, which Stifel said is justified by the company’s growth and margin profile.
Monster shares are up around 6% so far this year, underperforming the broader consumer staples sector.
Stifel also resumed coverage of Celsius Holdings (NASDAQ:CELH) with a Buy rating, citing improving brand momentum and expected benefits from its recent Alani Nu acquisition.