Buy Monster Beverage because it's about to become an international growth story, JPMorgan says

Monster Energy drinks
David Paul Morris | Bloomberg | Getty Images

Investors should buy Monster Beverage shares because growth from its international distribution deal with Coca-Cola will outweigh sluggish domestic sales, according to JPMorgan, which initiated coverage of the company with an overweight rating.

President Donald Trump's economic agenda should also help the stock, analyst Andrea Teixeira said.

"We believe that the Coca-Cola partnership will allow MNST to become more competitive abroad. In existing international markets, we believe that Monster will be able to leverage the expertise of KO bottlers to improve distribution and execution, particularly in countries where MNST has historically been weak," Teixeira wrote in a note to clients Tuesday. "We believe that Monster could prove to be one the biggest beneficiaries of potential corporate tax reform in our coverage universe."

Monster Beverage owns several drink brands such as Monster, NOS and Full Throttle. The company started distributing via Coca-Cola bottlers in Brazil late last year, according to Teixeira.

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