"We think the company has exceptionally strong fundamentals, driven by the popularity of energy drinks, especially with Millennial consumers," the firm wrote in an analyst note.
Credit Suisse expects strong growth to persist and accelerate for Monster in the coming years as it continues to broaden its range and expand geographically due to the Coca-Cola (KO) distribution system.
In June, the companies announced the closing of a strategic partnership and expanded distribution deal. Coca-Cola now owns a stake of about 16.7% in Monster.
"The energy category is growing at 5% and we expect Monster will continue to gain share from its only serious global competitor, Red Bull. Monster is now the volume leader in the U.S. and is closing the gap in value share," the firm added.
The Corona, CA-based company manufactures energy drinks, natural soft drinks and fruit beverages.
Shares of Monster were declining in early-morning trading on Friday.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B+ on the stock.
The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and notable return on equity.
The team believes its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: MNST