Cautious Outlook on Celsius Holdings Amid Sales Moderation and Intensifying Competition

Morgan Stanley analyst Eric Serotta maintained a Hold rating on Celsius Holdings (CELH – Research Report) yesterday and set a price target of $42.00.

Eric Serotta has given his Hold rating due to a combination of factors surrounding the performance and outlook of Celsius Holdings. The sales growth for Celsius and Alani Nu has shown a slight moderation, with a combined increase of 19% in the latest two weeks compared to 21% in the previous period. While Alani’s growth remains strong, Celsius has experienced a year-over-year decline in sales, which raises concerns about its long-term growth potential.
Furthermore, although the combined market share for Celsius and Alani Nu has increased slightly, the competition in the sugar-free beverage segment is intensifying. This competitive environment, coupled with the recent stock price rebound, suggests a cautious approach. As a result, Serotta remains skeptical about the long-term growth trajectory for both brands, leading to his decision to maintain a Hold rating on the stock.

Based on the recent corporate insider activity of 58 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.