Bank of America Securities analyst Jonathan Keypour reiterated a Sell rating on Celsius Holdings (CELH – Research Report) today and set a price target of $30.00.
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Jonathan Keypour has given his Sell rating due to a combination of factors related to Celsius Holdings’ recent financial activities and future projections. The management’s recent call regarding the Alani Nu transaction revealed detailed financials and outlined margin targets for 2025, which include significant step-up accounting costs. These costs are expected to impact the company’s gross margin, which has been adjusted downward for the upcoming quarters.
Additionally, there are uncertainties surrounding the distribution strategy for Alani, as management has not confirmed whether it will remain with Anheuser-Busch or move to the Pepsi network. This uncertainty, combined with discrepancies between scanner data and reported sales growth, adds to the cautious outlook. Despite Alani’s immediate contribution to sales and EBITDA, challenges within the legacy business suggest a tempered long-term sales trajectory, leading to the reiterated Underperform rating and a price objective of $30.
According to TipRanks, Keypour is a 3-star analyst with an average return of 6.4% and a 60.87% success rate.