Monster Beverage's (MNST) - Get Report recent downturn provided a buying opportunity for investors, according to Credit Suisse, which on Wednesday named the energy-drink company one of its top picks based on valuation. 

Year to date, Monster's stock is up nearly 20%. Over the past four weeks, however, it's down more than 10%. Credit Suisse gave Monster a $77 price target, representing 36% potential upside from the stock's previous close. 

The Corona, Calif., company's stock is trading up 2.5% to $58.

"We view [the] shares as cheap, given best-in-class growth prospects, low capital needs, and a clean balance sheet," analyst Kaumil Gajrawala wrote.

The target price "is based on 33 times our 2022 earnings per share of $2.87, discounted to 2019 at 8%." 

Gajrawala expects the company to increase revenue 10% this year while EPS grows 14%. 

A recent spike in distribution "is tied to the launch into Walmart (WMT) - Get Report , which we see as the next leg to the Reign story," he said.

"Velocity has fallen sharply, but that is to be expected as the rollout is in early stages. That said, we note velocity was already slowing pre-launch."

Reign, a Monster news release says, is a fitness-focused beverage line with 300mg of natural caffeine with no sugar, calories and artificial flavors and colors.

Save 57% With Our Labor Day Sale. Join Jim Cramer's Action Alerts PLUS investment club to become a smarter investor! Click here to sign up