Monster Beverage (MNST) is expected to post "strong" Q4 earnings, but much of the positive sentiment may already be priced into the stock, UBS Securities said.

The brokerage said in a Friday note that conversations with market participants suggest investor sentiment leans constructive driven by expectations that top-line growth in the US and Europe will continue to exceed estimates.

UBS said it forecasts Q4 organic sales growth of 12.7%, roughly 100 basis points above Visible Alpha consensus. It added that the international sales are likely to outpace US trends.

The investment firm cautioned that sustaining this momentum could become more challenging as competition intensifies and year-over-year comparisons get tougher. Questions also remain about the impact of the US Aluminum Midwest Premium on gross margins.

UBS forecasts Q1 sales growth of about 14%, driven by ongoing momentum in both US and European shipments. The firm noted that the company's shares are already reflecting much of the anticipated strong results, suggesting limited upside from current levels.

Monster Beverage is scheduled to report Q4 results Thursday.

UBS has a neutral rating on the stock with a $84 price target.

Shares of Monster Beverage were up nearly 1% in recent trading.

Price: 84.49, Change: +0.73, Percent Change: +0.87