Cautious Outlook on Celsius Holdings Amid Growth and Competitive Challenges

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 influencing Celsius Holdings. The company has shown strong short to medium-term growth prospects, particularly with the recent acquisition of Alani Nu, which is experiencing rapid growth in scanner data. However, despite these positive developments, there are concerns about the long-term growth potential for both the Celsius and Alani brands, especially in the face of increasing competition in the sugar-free energy drink segment.
Additionally, while the company has maintained its gross margin guidance, there are potential risks related to tariffs and inflation that could impact future performance. The integration of Alani Nu also presents challenges, such as purchase accounting adjustments that could affect earnings per share. Given these mixed factors, Eric Serotta has opted to maintain a Hold rating, reflecting a cautious stance on the stock’s future performance.

According to TipRanks, Serotta is an analyst with an average return of -7.2% and a 56.00% success rate. Serotta covers the Consumer Defensive sector, focusing on stocks such as Celsius Holdings, Boston Beer, and Philip Morris.