Update shared on08 Oct 2025
Fair value Increased 1.15%Analysts have modestly increased their fair value estimate for Monster Beverage to $67.68 from $66.91. They cite improved revenue growth expectations and resilient performance relative to peers.
Analyst Commentary
Recent Street research on Monster Beverage reflects a generally optimistic outlook, though analysts also note several ongoing challenges for the company. Price targets have been consistently raised, as most view Monster’s revenue growth and resilience favorably when compared to sector peers. However, caution remains regarding growth pace and broader category trends.
Bullish Takeaways- Bullish analysts are raising their price targets for Monster Beverage, citing robust performance and improving growth visibility, especially following a strong showing in Q2.
- Expectations for sustainable sales momentum have increased, with global shipment figures in July showing significant year-over-year growth, particularly outside the U.S.
- Improved gross margin and adjusted EBITDA in recent quarters have led to positive re-rating of the stock and suggest that the company is executing efficiently.
- In comparison to peers in consumer staples, Monster stands out as an exception to the broader trend of estimate cuts. This points to its resilient demand and market positioning.
- Bearish analysts point to Monster’s U.S. market growth still lagging behind the broader energy beverage category. This reflects potential challenges in its core market.
- Although performance has improved, a Neutral outlook from some corners highlights caution about overreliance on international gains instead of domestic momentum.
- Concerns remain about the sustainability of recent margin improvements, especially if competitive pressures or category growth slow in coming quarters.
What's in the News
- Monster Beverage has completed the latest tranche of its buyback program. Between April 1, 2025 and August 6, 2025, no shares were repurchased, and no funds were expended. This finalizes their commitment under the program announced on August 19, 2024. (company filing)
Valuation Changes
- Fair Value Estimate has increased slightly from $66.91 to $67.68.
- Discount Rate remains unchanged at 6.78%.
- Revenue Growth projection has risen modestly from 8.51% to 8.88%.
- Net Profit Margin has decreased marginally from 25.25% to 25.04%.
- Future P/E ratio has increased slightly from 32.57x to 32.89x.
Disclaimer
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