Analyst Eric Serotta from Morgan Stanley maintained a Hold rating on Celsius Holdings (CELH – Research Report) and keeping the price target at $42.00.
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Eric Serotta has given his Hold rating due to a combination of factors surrounding the recent performance of Celsius Holdings. The company’s year-over-year sales have seen a decline, particularly in the last two weeks, with a notable drop in market share both sequentially and annually. This downturn is further emphasized by the moderation in total distribution points growth and a decline in sales velocities.
Despite these challenges, Serotta acknowledges that while the stock has suffered a significant decline from its early 2024 highs, the risk/return profile has somewhat improved. However, he does not foresee a positive catalyst until there is an upward shift in scanner data trends. Additionally, while there is potential for future market share growth, there is also a risk that Celsius’s market share could stagnate or further decline due to increased competition.
In another report released on January 22, TD Cowen also downgraded the stock to a Hold with a $29.00 price target.
Based on the recent corporate insider activity of 72 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.