Eric Serotta, an analyst from Morgan Stanley, maintained the Hold rating on Celsius Holdings (CELH – Research Report). The associated price target remains the same with $42.00.
Eric Serotta has given his Hold rating due to a combination of factors impacting Celsius Holdings. The company’s recent sales data shows a modest improvement, with a 1.0% year-over-year increase in brand sales for the latest two weeks, compared to a previous decline. However, despite this growth, the market share for Celsius has only seen a slight sequential increase and remains down year-over-year.
Additionally, while the Alani Nu brand under Celsius has experienced significant year-over-year growth, its market share has remained flat sequentially. The combined market share of Celsius and Alani has seen a small sequential increase, but concerns persist regarding the overlap between the two brands and the defensive nature of recent business decisions. These factors, along with continued soft retail sales for the Celsius brand, contribute to the Hold rating, suggesting a cautious approach to investment at this time.
Based on the recent corporate insider activity of 56 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CELH in relation to earlier this year.