On Thursday, RBC Capital Markets adjusted their outlook on Monster Beverage Corporation (NASDAQ:MNST), increasing the stock's price target to $65 from the previous $60, while maintaining an Outperform rating. The revision follows Monster Beverage's impressive January sales performance, which showed a 20% increase, overshadowing the more subdued US trends attributed to weather conditions.
According to RBC Capital, the better-than-expected results were likely driven by significant gains in international markets such as Argentina, Brazil, and India, where the firm has limited visibility.
Additionally, year-over-year timing differences in shipments to bottlers, including those for shelf resets, and contributions from Monster Brewing Company were cited as contributing factors to the strong sales figures.
The management's commentary on the state of the business was noted to align with RBC Capital's own channel checks. This alignment has bolstered the firm's confidence in the energy drink company's performance, leading to the increased price target.
RBC Capital's revised price target of $65, up from $60, reflects a positive stance on Monster Beverage's growth prospects and operational execution. The Outperform rating suggests that the firm anticipates the stock to outperform the average total return of stocks in the analyst's coverage universe over the next 12 months.
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