12:11 PM EDT, 05/06/2026 (MT Newswires) -- Monster Beverage (MNST) is seen delivering strong revenue in Q1 on global trends, but its margins could be pressured by costs and elevated gas prices, RBC Capital Markets said in a note emailed Wednesday.

RBC analysts said they expect reported trends to match or exceed tracked channel sales of 11.2% growth, which typically understates trends. The company's category fundamentals remain solid as household penetration and purchase frequency continue increasing, the analysts said.

Monster Beverage has multiple tools to offset headwinds, including pricing, supply chain optimization, revenue growth management, and shifting product mix towards zero-sugar variants, the analysts said. However, the cost environment has worsened due to the Middle East conflict, which may lead the company to temper guidance on margins, the analysts noted.

The analysts said the company's risk-reward profile is still favorable and that the company will be able to mitigate the impacts of cost pressures with the number of levers at its disposal.

Monster Beverage is set to report Q1 financial results on Thursday.

RBC maintained its outperform rating on the company's stock with a price target of $86.

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