Dara Mohsenian, an analyst from Morgan Stanley, maintained the Buy rating on Monster Beverage. The associated price target remains the same with $74.00.
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Dara Mohsenian has given his Buy rating due to a combination of factors that suggest Monster Beverage is poised for continued stock outperformance. Despite the stock’s significant year-to-date increase, Mohsenian believes that Monster Beverage will continue to surpass its peers, driven by above-consensus organic sales growth and strong revenue momentum, particularly in the US and Western Europe.
Mohsenian’s confidence is further bolstered by robust scanner data and positive feedback from Coca-Cola bottlers, which support the expectation of strong international growth and market share gains. Additionally, planned pricing increases in the fourth quarter and favorable foreign exchange conditions are expected to enhance revenue. While acknowledging the limited upside potential, Mohsenian sees a solid 15% price target upside, supported by conservative revenue growth forecasts that are well above consensus and historical trends, positioning Monster Beverage as a standout performer in a generally muted consumer packaged goods environment.
Based on the recent corporate insider activity of 38 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of MNST in relation to earlier this year.