Aug. 9 at 12:15 PM
$MNST
Piper Sandler sees 20% upside ahead for Monster Beverage
Piper Sandler has turned bullish on Monster Beverage, upgrading the stock to overweight from neutral. The firm also raised its price target to
$74 from
$54, implying nearly 22% upside from Thursday’s close.
The energy drink company has shaken off the category’s “inexplicable 2024 funk” and better momentum has returned, analyst Michael Lavery said in a note Thursday. Monster Beverage’s second-quarter earnings and revenue topped expectations when it reported results Thursday.
Lavery anticipates aluminum tariffs will be manageable for Monster, estimating that the metal is about 10% of its cost of goods.
“MNST expects to make selective price adjustments by package and channel, as well as stepping back promotions in the US in 4Q25 to offset incremental aluminum costs,” he wrote.
The company is also taking steps to rightsize its beer business to improve profitability, he added.
The stock has gained nearly 16% year to date.
