Wells Fargo analyst Bonnie Herzog argued in a pre-market research note that Monster Beverage already "fully reflects" growth opportunities. International markets are "undoubtedly a major opportunity" and Herzog expects Monster to grow its share of the global energy category to 20% from 8%, but she says the company is nevertheless currently "fairly valued." Turning to China specifically, the analyst highlighted two potential hurdles for the company's efforts in the country: The competitive structure of China's energy drink market is similar to that of beer, a space in which new entrants "have had a very difficult time" competing against local juggernauts; and Monster's local product is one-third the price of its U.S. cans, with Herzog modeling just 10% gross margins and hefty operating expenses in the country. The analyst contended that Monster's China business is worth only $2-$3 per share, and reiterated her Market Perform rating on the stock.