Needham analyst Gerald Pascarelli has reiterated their neutral stance on MNST stock, giving a Hold rating today.
Gerald Pascarelli has given his Hold rating due to a combination of factors that suggest a balanced outlook for Monster Beverage. The company ended the year on a strong note and is entering 2025 with positive momentum, supported by stable elasticities following a recent price increase. Additionally, innovations by Monster Beverage and its main competitor are contributing to improvements in the U.S. energy drink market, which is a promising sign.
However, despite these positive indicators, the initial months of the year are expected to be slow due to external factors like severe weather conditions impacting sales. Nevertheless, revenue is anticipated to pick up during the summer months as the effects of the price increase become more pronounced. While gross margins are likely to improve, the volatility in aluminum costs remains a significant concern. Therefore, while there is optimism, the Hold rating reflects a cautious approach given these mixed factors.
In another report released today, Piper Sandler also maintained a Hold rating on the stock with a $51.00 price target.