Monster Beverage (MNST) Upgraded at Bernstein on Market Share Gains

Bernstein analyst Callum Elliott upgraded Monster Beverage (NASDAQ: MNST) shares to Outperform from Market Perform, citing market share gains that should propel revenue growth.

Elliott raised the price target on the stock to $110 from $97. Shares of the energy drink maker fell 2.4% on Wednesday, to around $87.09. Bernstein called Monster its new top pick in U.S. beverages.

Growth is set to re-accelerate again in the next few quarters, the analyst said, adding that the stabilization of market share would push forward revenue growth by five percentage points. With pricing increases offsetting margin pressure and freight and aluminum prices leveling off, Monster is “cresting the hill.”

Elliott cited recent Nielsen data that showed a 20 basis point jump in market share for Monster compared to the 200 to 100 basis point contraction of the past year. Bernstein estimates Monster, with minimal market share losses in the U.S. and growth in international markets, could grow revenue 12% to 13%.

Bernstein estimates fiscal year 2022 revenue of $6.456 billion, 1% above consensus, and fiscal year 2023 revenue of $7.357 billion, 4% above consensus.

Monster shares are down 9.4% this year.

By Liz Moyer

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