10 Best Sugar Stocks to Buy According to Hedge Funds

4. Monster Beverage Corporation (NASDAQ:MNST)

Number of Hedge Fund Holders: 56

Monster Beverage Corporation (NASDAQ:MNST) is one of the best sugar stocks to buy according to hedge funds. On February 20, Deutsche Bank lifted the price target on Monster Beverage Corporation (NASDAQ:MNST) to $88 from $84 while keeping a Buy rating on the shares. In a separate development, Argus raised the price target on the stock to $95 from $90 on January 27 while maintaining a Buy rating on the shares.

The firm stated that Monster Beverage Corporation (NASDAQ:MNST) has the potential to grow both its international and domestic revenue, as Monster holds an impressive history of expansion with five-year compound annual sales and EPS growth rates of 13%-15%. It added that the company has a clean balance sheet, and while its valuations are on the rich side, the stock merits a premium given the company’s product launches and enhancements.

In another development, Morgan Stanley lifted the price target on Monster Beverage Corporation (NASDAQ:MNST) to $96 from $87 on January 26, maintaining an Overweight rating on the shares. The firm considers enhanced management execution “an underappreciated source of upside”, which adds to the already high long-term sustainability of the company’s outsized topline growth.

Monster Beverage Corporation (NASDAQ:MNST) is involved in the development, sale, marketing, and distribution of energy drink beverages and concentrates. The company’s operations are divided into the following segments: Monster Energy Drinks, Strategic Brands, and Other.