12:01 PM EDT, 05/01/2024 (MT Newswires) -- Monster Beverage ( MNST ) faces long-term growth prospects despite near-term headwinds and recent weakness in shares, RBC Capital Markets said Wednesday in a report.

"We continue to see strong long-term topline growth potential" driven by the core energy drink business, "innovation capabilities and overall energy category growth," RBC said.

"While tracked channel data looks soft, our discussions with Coca-Cola bottlers suggest overall trends are likely more favorable," RBC said. "While we acknowledge some near-term headwinds" and poor investor sentiment, "the risk reward is favorable given the underperformance" of shares, RBC said.

The company is scheduled to report Q1 results Thursday after the close of the market.

RBC has an outperform rating on Monster Beverage ( MNST ) with a $65 price target.

Price: 53.57, Change: +0.12, Percent Change: +0.22