In a report released today, Eric Serotta from Morgan Stanley maintained a Hold rating on Celsius Holdings, with a price target of $61.00.
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Eric Serotta’s rating is based on the observation that while Celsius Holdings has shown strong year-over-year growth, there has been a noticeable slowdown in its recent performance. The energy sales growth for Celsius and Alani Nu combined has moderated from previous periods, indicating a deceleration in momentum. Specifically, the growth rate for the Celsius brand has decreased from 10.5% to 7.5% in the last two weeks, with a two-year average growth also showing a slight decline.
Additionally, the market share for Celsius and Alani combined has slightly decreased, which might suggest increased competition or market saturation. The upcoming transition of Alani to the PEP system could also introduce uncertainties. These factors contribute to a more cautious outlook, leading to the Hold rating as the company navigates these challenges.
Serotta covers the Consumer Defensive sector, focusing on stocks such as Celsius Holdings, Primo Brands, and Philip Morris. According to TipRanks, Serotta has an average return of -5.7% and a 51.61% success rate on recommended stocks.