Monster: Powerful energy kick

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  Christian Ingerl
  Redaktor

Starting at full speed Monster Beverage is entering the final phase of 2025 at full speed: following surprisingly strong quarterly figures, the share price has reached a new high – showing that the market continues to believe in the energy drink manufacturer’s story. Record sales, significantly improved margins and a jump in profits are the ingredients for the current optimism.

Better than expected

The figures in detail: sales increased by 16.8% to USD 2.2 billion, while earnings per share of 56 cents were significantly higher than the consensus estimate of 48 cents on average. The reason for this was strong demand for energy drinks, particularly the Ultra product line. This business with sugar-free drinks increased by almost 18%. Optimized supply chains and higher prices also had a positive effect on margins. The gross profit margin improved from 53.2% in the same quarter of the previous year to 55.7%. The message behind the figures is clear: Monster is not only growing strongly, but is also growing highly profitably again, allaying old concerns about rising costs and pressure on margins among many investors.

New fire

Monster also traditionally relies heavily on innovation, i.e. new lines, flavors and packaging. A central building block for the growth story in 2026 is “FLRT”. The launch of the new brand, an energy brand explicitly aimed at the female target group, is planned for the first quarter of 2026. Zero sugar, lifestyle branding with additional beauty & wellness features are the selling points. If the campaign strikes a chord with young women, FLRT will be able to tap into additional volumes and drive the growth story forward.

But the existing products also have further potential. The company, known for the iconic green and black can on supermarket shelves, divides its business into three segments: At the top are energy drinks, which set the tone with a share of around 92% of total sales. Under “Strategic Brands & Affordable Energy”, the Group primarily bundles those brands that benefit from the cooperation with Coca-Cola. There are also low-cost brands such as Predator and Fury, which are primarily aimed at emerging markets. And then there is the “Alcohol Brands” division, a strategically exciting area with craft beers and the “Nasty Beast Hard Tea” brand launched last year. However, its performance is still very volatile. In the past quarters, the segment has consistently recorded declines, the highest at the beginning of the year.

Price potential

However, analysts are not letting this spoil the good mood. Following the latest interim report, several research houses such as Evercore ISI have raised their price targets. The latter now sees potential up to USD 80 and the general consensus for the Monster share is “buy”. Even though the share has already priced in a large part of the growth story, it could continue to offer potential supported by high margins, a strong brand and product innovations. The next exciting event that investors should mark in their calendars will take place on December 2. The company will then present itself at the Morgan Stanley Global Consumer & Retail Conference and possibly provide further details on its strategy.

Investment solutions

Opportunity-oriented investors can accelerate the share’s current strong momentum with leveraged securities. The SIX-listed Long Mini Future MMNAET from Leonteq. The leverage is 5.1, the stop loss level is USD 60.6430 and is thus 17% away from the current price level. The mini future is a little more comfortable IMNVVZ of the ZKB with a multiplier of 3.2. However, it has a significantly higher distance to the knock-out: the stop loss level is at USD 51.7620 and thus offers a buffer of 29%.

Conservative investors who expect a short-term breather can achieve attractive returns with sideways products. The Barrier Reverse Convertible RMNAAV from Bank Vontobel would be a suitable investment vehicle for this. The maximum yield of 7.78% p.a. is well protected by a risk buffer of 40.1%. The term ends on October 9, 2026.