03:14 PM EST, 11/07/2025 (MT Newswires) -- Monster Beverage ( MNST ) delivered a strong Q3 but further upside appears largely priced into the stock, UBS Securities said.

The company reported Q3 earnings per share of $0.55, topping UBS and Street estimates of $0.48, and the brokerage said Thursday in a note that a quarter-to-date read was broadly in line and positions the company for a likely strong Q4.

Gross margins held at 55.7% despite tariff-related cost pressures, supported by recent channel- and package-specific pricing effective Nov. 1 and improved efficiencies, the firm said. The brokerage also flagged potential margin upside from the expansion of concentrate-based affordable energy products.

UBS now sees about 12% organic revenue growth in Q4, with continued momentum in both the US and international markets.

However, it cautioned that with shares trading near 32 times next-twelve-months EPS, the upside "is largely priced in," and that greater visibility on further upside to estimates or a more attractive entry point would be needed before turning more constructive.

UBS lifted its 12-month price target to $75 from $72 and maintained a neutral rating.

Shares of Monster Beverage ( MNST ) were up more than 6% in recent Friday trading.

Price: 70.46, Change: +4.15, Percent Change: +6.26