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.
Price: 60.09, Change: +0.06, Percent Change: +0.11
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.