Innovation high is not the end? Morgan Stanley continues to be bullish on Monster Beverage (MNST.US) at high levels.

Morgan Stanley reiterated its bullish view on Monster Beverage (MNST.US) as the new year approaches. The firm emphasized that recent retail scan data in the US and Western Europe not only continues to show strong performance but also surpasses market expectations, contrasting sharply with the current downturn in the overall consumer packaged goods industry. In addition, Monster Beverage exhibits a stable pricing trend compared to other companies in the industry. As a result, Morgan Stanley not only raised its revenue and earnings per share expectations for Monster Beverage for 2026, which it rates as "overweight," but also increased its target price from $81 to $87. Analyst Dara Mohsenian stated, "It is crucial, in our view, that Monster Beverage is entering a new phase of development. This phase, compared to the past era dominated by startup culture, is more data-driven. The company not only has more advanced technology and analytical tools but also a stronger management team. Furthermore, with the energy category maintaining strong long-term growth, its strategic direction is becoming increasingly clear." Mohsenian further pointed out that with the continued deepening synergies with the Coca-Cola Company (KO.US) system, Monster Beverage is highly anticipated for its expansion in the international market. "Monster Beverage can access the most powerful and mature non-alcoholic ready-to-drink beverage distribution networks globally through this cooperation; and for bottlers, they will gain a high-growth, high-profit brand that adds new highlights to their product portfolio." Monster Beverage's stock price has risen by 45% year-to-date and hit a historical high of $77.17 last Friday. Seeking Alpha and Wall Street analysts both give Monster Beverage a "buy" rating.