11:50 AM EDT, 06/12/2025 (MT Newswires) -- Monster Beverage ( MNST ) could have sustained higher organic sales growth compared with its peers, both in the short term and the long term, Morgan Stanley said in a Wednesday note.

Growth in the global energy drink category remains "robust" in the long term, while in the US, growth is recovering rapidly in the short term, Morgan Stanley analysts said. Younger generations are consuming energy drinks at much greater rates than previous generations, while innovation in healthier products have driven greater household penetration, they noted.

After a "weak" 2024, the analysts said they forecast a sustained strong recovery in Monster's sales growth at retail in the US and internationally, due to a number of factors, including the company's improving market share, acceleration in innovation, and pricing growth reacceleration with limited demand elasticity.

The analysts also said that Monster's valuation can still expand with upside in its topline compared with consensus.

Morgan Stanley reiterated the company's stock rating at overweight and increased the price target to $70 from $65.

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