Bernstein analyst Callum Elliott upgraded Monster Beverage (NASDAQ:) Shares to Outperform Market Perform. This is due to market share gains which should drive revenue growth.

Elliott has raised the price target for the stock to $110, from $97. The shares of this energy drink manufacturer fell 2.4% to $87.09. Bernstein declared Monster to be the new number one in U.S. beverages.

The analyst stated that growth is expected to accelerate again over the coming quarters. He also said that stabilization in market share will increase revenue growth by five percent. With pricing increases offsetting margin pressure and freight and aluminum prices leveling off, Monster is “cresting the hill.”

Elliott mentioned recent Nielsen data which showed that Monster had a 20% increase in its market share, compared with the 200-100 basis point contractions of the last year. Bernstein projects that Monster with minimal U.S. Market share loss, and increased growth in international markets could increase revenue by 12% to 13%.

Bernstein projects fiscal year 2022 revenues of $6.456 Billion, which is 1% higher than consensus and fiscal year 2020 revenue of $7.357 Billion, which is 4% more than consensus.

This year, Monster shares have fallen 9.4%

By Liz Moyer