Monster Beverage (MNST) is expected to post solid Q2 results on Thursday, supported by a recovering energy beverage category and resilient US and international trends, RBC Capital Markets said in a Wednesday note.

The firm estimates Monster will report Q2 earnings per share of $0.47 on sales of $2.05 billion, slightly below consensus forecasts of $0.48 and $2.06 billion, respectively.

The brokerage said the print should still look strong in a tough earnings season.

Tracked channel sales for the June quarter rose about 8.1%, and the broader energy drink category remains in good shape, according to the note.

Pricing is holding firm and contributing meaningfully to revenue, which RBC sees as a positive in a weaker consumer environment.

Meanwhile, Monster is facing an "incremental near-term headwind" due to a tariff on aluminum, but that cost will likely be manageable given the company's "topline momentum, room for productivity, and perhaps some pricing later in the year," according to the note.

RBC has an outperform rating on Monster and $64 price target.

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