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A caffeine-fueled thumbs up
Piper Sandler’s broader beverage preview had a lot of names in the mix, but the loudest message for Monster Beverage was pretty simple: the recent sell-off may have done half the work for you.
Jefferies echoed its Buy rating on Monster Beverage and set a $100 price target, framing the stock’s pullback as a chance to pick up shares without paying peak-hype prices. That’s the kind of note investors like to hear when a crowd favorite gets a little wobbly.
Why Wall Street still likes the energy drink machine
The bullish case isn’t exactly a mystery. Evercore pointed to Monster’s continued strength in energy drinks, saying growth is still running in the low double digits. In other words: the company doesn’t need to reinvent the wheel — it just needs to keep selling a lot of cans with enough swagger to make the fridge at your local gas station look like a Nasdaq chart.
Jefferies also noted the stock is trading at around 29 times its 2027 earnings estimate, a touch below the 10-year average. So even after a big run and a recent dip, the valuation argument is basically: this isn’t cheap-cheap, but it’s not asking for a luxury fee either.
The investor takeaway
- Bull case: Monster still has brand power, solid growth, and a category tailwind.
- Risk: If the market decides the multiple is still too rich, the stock can stay moody.
- What to watch: Whether beverage demand and energy-drink growth stay hot into Q1 earnings season.
Big picture: Wall Street seems to think Monster’s recent wobble is more of a pit stop than a flat tire.