Monster Beverage's (MNST) clear long-term strategies and management depth position the company for sustainably higher growth than its peers, Morgan Stanley said in a Monday note.

Morgan Stanley analysts commended the company's new chief growth officer Rob Gehring, whom they said delivered a "very effective" analytical review of key areas of opportunity, as well as other key management leaders, at a recent investor conference. The company's strengthened focus on strategy in a thriving market will be a catalyst for growth in fundamentals, the analysts said.

Monster also benefits from its tighter integration with Coca-Cola's (KO) vast distribution system, accelerating its global growth at a compounded annual growth rate of about 23% in the decade since the partnership started in 2014, the analysts said. They noted that recent statements for the investor day highlight the improved collaboration with Coca-Cola and the cola firm's largest bottler CCEP.

Monster's international business has grown to 43% of its sales mix in Q3, a huge leap compared with 32% in 2019 pre-COVID, and the international profit mix is at 27% year-to-date compared with 16% in 2019, the analysts said. They forecast that a 15% international sales compounded annual growth rate in the coming five years will drive 10% corporate revenue compounded annual growth rate.

Morgan Stanley kept the company's stock rating at overweight and raised price target to $87 from $81.

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