Morgan Stanley has increased its price target for Monster Beverage to $96.00 from $87.00 and reiterated an Overweight rating on the energy drink maker. The firm said the new target implies about a 17% upside from the stock's current price of $82, noting that the share price is trading close to its 52-week high of $82.19.
The boost to the target represents an approximate 10.3% increase from Morgan Stanley's prior price objective. According to InvestingPro data cited in the firm's notes, Monster is trading at a price-to-earnings ratio of 46.78, a multiple that Morgan Stanley interprets as the market pricing in substantial growth expectations.
In explaining its decision, Morgan Stanley pointed to what it described as "much higher and more durable growth than peers" and the presence of "large upside vs consensus." The firm highlighted a collection of factors underpinning its view:
- Sustained robust category growth in the energy drink market.
- An inflecting U.S. market share trajectory.
- Consistent and now accelerating international share gains.
- A robust innovation pipeline supporting product refresh and expansion.
- Key execution positives that the firm sees emerging for the business.
Those elements formed the analytical basis for Morgan Stanley's more bullish price target while maintaining the stock's Overweight designation.
The Morgan Stanley action comes amid a sequence of similar upward adjustments from other brokerages, each pointing to expectations of continued growth for Monster. Stifel raised its price target to $82, citing forecasts for strong growth in the U.S. energy drink market and international expansion. Piper Sandler increased its target to $85, highlighting the company's sustainable top-line growth and emphasis on zero sugar offerings. Wells Fargo raised its target to $83 after an annual meeting it described as positive. BMO Capital lifted its target from $53 to $73 following an investor meeting in which future growth strategies were discussed.
Despite the spread in target prices across these firms, the advisory ratings remained positive: Stifel holds a Buy rating while Piper Sandler maintains an Overweight. Across those updates, the common thread cited by analysts is anticipation of continued growth and ongoing product and geographic expansion for Monster Beverage.
Note: This article reports on analyst price-target and rating updates and related commentary attributed to the firms cited. It does not include additional valuation tools or promotional material.