Monster Beverage gains after J.P. Morgan upgrades on 2023 potential
Jack Taylor

J.P. Morgan upgraded Monster Beverage (NASDAQ:MNST) to an Overweight rating after having the beverage stock slotted at Neutral. The firm sees Monster Beverage as well positioned into 2023 from both organic top-line and bottom-line perspectives.
Profitability is anticipate to remain subdued in Q3 and Q4, but lower aluminum costs alleviating, more efficient logistics, and growth potential are said to set up MNST for share price gains.
"Even considering the potential deceleration of underlying top-line growth (ex-COVID-19) from low teens to high single digits or low double digits globally, Monster remains one of the best growth stories in our coverage universe, with a strong track record of delivering an above-average earnings CAGR over the past 10 years."
While more competition and the fragmentation of the broader energy/caffeinated drinks category are in the mix, MNST is expected to continue to benefit from an enlarged pie and recruitment in the high growth energy drink category. The distribution setup under the CocaCola Company bottling system is also seen as an advantage.
J.P. Morgan assigned a price target of $106 to Monster Beverage.
Shares of MNST rose 2.34% in premarket trading on Tuesday to $95.91.
Monster Beverage (MNST) is due to report earnings on November 3.