Analyst Eric Serotta from Morgan Stanley maintained a Hold rating on Celsius Holdings (CELH – Research Report) and keeping the price target at $42.00.
Eric Serotta has given his Hold rating due to a combination of factors impacting Celsius Holdings. The primary reason is the soft quarter-to-date (QTD) trends observed in the scanner data, which prompted a downward revision of the first-quarter revenue estimates for 2025. Despite some recent improvements, the Celsius brand continues to face challenges, including consumer overlap with Alani, although Alani itself is experiencing robust growth.
Serotta’s analysis indicates that while the energy drink category has seen healthy growth, Celsius’s retail sales have declined in tracked channels. The revised revenue estimate reflects a decrease in sales, with anticipated headwinds from promotional activities and incentives affecting margins. Despite a recent stock price increase and optimism surrounding the Alani Nu acquisition, the overall outlook remains cautious, justifying the Hold rating.
CELH’s price has also changed moderately for the past six months – from $31.630 to $34.880, which is a 10.28% increase.