With continued momentum for new products including Rehab and Absolutely Zero, UBS is forecasting a big year for Monster Beverage Company. In a new report, UBS analyst Kaumil Gajrawala projects Monster’s revenue to grow by 18.4 percent in 2012, with new products contributing five percentage points to top line growth. The investment bank raised its 2012-13 earnings estimates for Monster and expects the company to earn between $3.88 and $4.74 per share, and raised its overall expectations for 2012 to $125 per share.
UBS also noted its expectations for continued growth of the Monster brand beyond 2012. UBS believes that Rehab, a tea and lemonade mix, will strengthen the long-term potential for Monster by giving the company “a viable foothold” in the massive ready-to-drink tea category. UBS also pointed out substantial areas for the growth of Monster products in underdeveloped East Coast markets, and continued opportunity for distribution gains in the Northeast and Atlantic states.