Hedgeye adds Monster Beverage to ‘Best Ideas’ list
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Hedgeye analyst Dan Biolsi forecast significant upside for Monster Beverage Corp. (NASDAQ:MNST) in a note on Sunday that touted the stock as a âBest Idea long.â 
âEnergy drinks have the best secular growth prospects within the broad beverage category,â he advised. âDriven by lifestyle trends, health & wellness, taste preferences, and demographics, energy drinks have at least a decade of growth ahead.â
Biolsi noted that the highly-caffeinated beverages quickly become a staple of many consumer diets, with brand loyalty remaining strong. As a leader in energy drinks, Monster Energy (MNST) is a key beneficiary.
To be sure, Biolsi acknowledged the company has missed estimates in recent quarters and does not expect a change in this trend for the current quarter. However, the expectation of an inflection in margins as inflationary pressures abate offer sufficient reason to buy the stock.
Hedgeye plans to hold a presentation on the stock on Thursday.
Shares of Monster Beverage (MNST) rose 1.11% shortly after Mondayâs market open.
Read more on M&A speculation in the beverage space.