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Monster Beverage Reports 'Exceptionally' Strong Q1, RBC Says

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-- Monster Beverage's (MNST) "exceptionally" strong Q1 print, combined with a healthy April sales figure, should ease concerns of a macro-driven slowdown, RBC said in a report Friday.

"While we were expecting topline strength, we did not expect this magnitude of upside," the report said.

"With growth like that it is understandable that investors are less concerned with some margin compression," it added.

Despite some concerns on top-line sustainability due to the Middle East conflict, Monster sustained its momentum into April, the note said, pointing to April sales growth of 24.7%.

The note also said the firm is not only seeing robust category growth globally but is delivering improving relative performance as the international business shows no signs of slowing.

RBC reaffirmed its outperform rating and raised its price target to $88 from $86.

Price: $88.32, Change: $+12.35, Percent Change: +16.26%

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