Monster Beverage Corp (NASDAQ:MNST) shares present a buying opportunity following a recent pullback, according to Jefferies, which maintained its ‘Buy’ rating and $100 price target on the energy drink maker.
The stock recently traded at about $76, about 11% below its February highs, and currently trades at roughly 29 times Jefferies’ 2027 earnings estimate, slightly below its historical valuation.
Jefferies said near-term pressures, including higher gasoline prices, geopolitical uncertainty and increased competition, have weighed on sentiment. Despite that backdrop, Jefferies said it sees no change in Monster’s longer-term growth story and views the recent weakness as a chance for investors to add exposure to the energy drink category.
“Importantly, we see no change in Monster’s long-term story and view current levels as an attractive way to add exposure to one of the fastest-growing categories in Beverages,” the analysts wrote.
The firm pointed to continued growth in the US energy drink market as a key driver. Jefferies believes category momentum remains strong as consumer sentiment improves and retailers allocate more shelf space from adjacent beverage segments to energy drinks.
“For a pure-play, category growth is the most important metric—obvious, but worth repeating,” the analysts wrote, adding that the firm sees a path to roughly 10% growth in the US energy drink category despite tougher comparisons later in the year.
Jefferies also said Monster’s execution has improved, citing a stronger product innovation pipeline and a greater focus on revenue growth managementan area the company has emphasized in recent years.
Competition from Red Bull remains a factor, particularly as the rival brand introduces new flavors. Jefferies estimates that a one-percentage-point gain in US market share for Red Bull could translate to roughly $273 million in retail sales, though the firm still expects Monster to deliver steady growth.
The analysts also highlighted the foodservice channel as a potential new avenue for expansion. Energy drinks remain relatively underpenetrated in on-premise locations, accounting for about 9% of volumes compared with roughly 26% for carbonated soft drinks, suggesting room for growth.
International markets are another key opportunity, according to Jefferies. The firm said consumption levels outside the United States remain significantly lower on a per-capita basis, leaving considerable runway for expansion.
“International has been a key driver of growth and remains underappreciated,” the analysts wrote, forecasting international sales growth of about 15.5% through 2027, roughly 200 basis points ahead of broader market expectations.
Jefferies also pointed to a continued upward revision cycle in analyst estimates. Over the past year, consensus forecasts for 2026 and 2027 sales have risen about 8%, while earnings estimates have increased 12% to 15%, reflecting improving expectations for the company’s performance.
Jefferies projects 2026 earnings per share of $2.29, slightly above its prior estimate.
The firm’s $100 price target is based on a 34x multiple applied to its 2028 earnings estimate of $2.99 per share, reflecting its view that Monster can sustain a premium valuation as the energy drink category continues to expand.