Monster Beverage (MNST) will likely post "solid" topline growth in Q1 driven by resilient US energy drink trends and innovation in a challenging consumer environment, RBC Capital Markets said in an earnings preview emailed Wednesday.
The company's new products, Ultra Blue Hawaiian and Ultra Vice Guava, are gaining traction, supported by bottler incentives and a pivot to grocery retail, according to RBC.
Despite a tough comparison base, the firm said April sales are projected to rise mid-single to high-single digits, aided by easier year-over-year comparisons and ongoing consumer interest in energy drinks.
RBC said the company is addressing concerns over aluminum prices and potential tariffs with proactive hedging strategies.
The firm has an outperform rating on Monster's stock with a $63 price target.
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