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 affecting Celsius Holdings. The company’s brand sales have shown a slight improvement, with a 2% year-over-year increase in the latest two weeks, compared to a 1% increase in the previous period. However, the market share for Celsius remained flat sequentially and even declined by 80 basis points year-over-year, which indicates challenges in gaining a competitive edge.
Additionally, while the combined sales of Celsius and Alani Nu have grown by 22% year-over-year, the market share has remained flat sequentially. The recent stock bounce and continued soft retail sales for the Celsius brand, coupled with consumer overlap between Celsius and Alani, contribute to the cautious outlook. These factors suggest that while there is some growth, the potential for significant upside is limited, justifying the Hold rating.
In another report released yesterday, TD Cowen also maintained a Hold rating on the stock with a $35.00 price target.
CELH’s price has also changed slightly for the past six months – from $34.160 to $37.080, which is a 8.55% increase.