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Monster Beverage's Margins Poised for Unexpected Inflection in 2027, Morgan Stanley Says

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Monster Beverage's (MNST) margins are poised for an unexpected inflection in 2027, as pressure points from aluminum and geographic mix from 2026 dissipate and drivers like greater pricing, cost efficiency, and shift to higher-margin zero-sugar products shine, Morgan Stanley said Friday.

The company is further expected to see an outsized and durable long-term topline growth, as confirmed by an approximately 16% two-year average 4-month organic sales growth through July versus 11% to 12% in the prior two quarters and 10% in the last 12 months, according to the note.

Additionally, the company's organic sales growth is driven by consistent international share gains, rebounding US market share, as well as expansion into underpenetrated emerging markets and building pricing power, Morgan Stanley said.

Morgan Stanley raised its price target on the company's stock to $110 from $103 and maintained its overweight rating.

Price: $90.76, Change: $-3.40, Percent Change: -3.61%

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