Coke, Monster Still Sizzle Amid Strong Demand And Tailwinds: Analyst

Bank of America Securities analyst Bryan D. Spillan remains bullish on The Coca-Cola Company (NYSE:KO) and Monster Beverage Corporation (NASDAQ:MNST), citing resilient growth, strategic tailwinds, and improving fundamentals across the broader Coke system despite near-term macro volatility.

In a recent report on The Coca-Cola Co. and its global system of publicly traded bottlers (incl. Monster Energy), BofA Securities said the investment case for giants like The Coca-Cola Company and Monster Beverage Corporation remains robust, fueled by strong consumer demand.

Coca-Cola Company: The analyst presented a detailed overview of this beverage giant’s bottlers, who contribute 55% of global volume.

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While second-quarter volume may face temporary softness, the analyst writes the second half of 2025 looks favorable for Coca-Cola’s defensive profile, with potential upside in first-half for underperformers like Coca Cola Femsa S.A.B. (NYSE:KOF), supported by solid fundamentals and coordinated strategy across the Coke System.

BofA Securities notes that Coca-Cola HBC’s strong growth trajectory remains intact despite a more volatile macro backdrop, with the company gaining 150 bps of NARTD (non-alcoholic ready-to-drink) share in 2024 and nearly 300 bps over the past three years.

Solid revenue trends are driving high-single-digit EBIT and roughly 10% EPS growth, supported by a robust balance sheet that offers flexibility for M&A or increased shareholder returns.

Meanwhile, Coca-Cola Europacific Partners is set up for a stronger second half after lapping a soft summer in 2024, with longer-term tailwinds from rising per capita consumption and income growth in Indonesia and the Philippines expected to support future expansion alongside stable European operations.

BofA Securities highlights that Coca-Cola’s sustained ~5% organic sales growth, driven by a healthy mix of volume and pricing, continues to outpace multinational peers, though this strength doesn’t appear fully priced into the stock.

The analyst maintained the Buy rating on the stock with a price forecast of $77.

Monster Beverage: Monster Beverage is also showing signs of recovery, with U.S. volumes rebounding after last year’s slowdown and international margins trending higher, aided by pricing and steady U.S. demand.

Spillan reiterated the Buy rating on the stock, with a price forecast of $66.

The analyst assigns a premium valuation to Monster Beverage shares relative to large-cap beverage peers and broader consumer staples, citing the company’s consistently strong growth profile and attractive margin structure as justification.

However, the note outlines several downside risks, including a maturing category that may be losing market share, weaker-than-expected impact from innovation, slower international growth, investor rotation away from defensive stocks, currency headwinds, and a less robust sales outlook for the Bang brand over the medium term.

Price Action: MNST shares are trading lower by 0.56% to $62.68 at last check Wednesday, while KO shares are trading lower by 0.44% to $72.03.

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