-- Monster Beverage (MNST) offers "outsized" long-term growth potential after reporting "very strong" Q1 and April performance, Morgan Stanley said in a Friday note.
The note pointed to organic sales growth of 22% in the last four months, reinforcing confidence in long-term growth prospects above market expectations.
The report also said its gross margin performance/forward outlook was better than feared.
"MNST valuation has moved up after stock outperformance," the report said. "But we continue to believe that Monster's growth profile is unique in CPG and more durable in nature...which should drive a scarcity valuation premium."
Morgan Stanley raised its price target to $100 from $96 while maintaining its overweight rating on the stock.
Price: $85.89, Change: $+9.92, Percent Change: +13.06%