Bank of America Securities analyst Jonathan Keypour reiterated a Sell rating on Celsius Holdings (CELH – Research Report) yesterday and set a price target of $26.00.
Jonathan Keypour has given his Sell rating due to a combination of factors surrounding Celsius Holdings’ current market position and future prospects. Despite the recent acquisition of Alani Nu, which appears to be a strategic move at a favorable valuation, there are significant uncertainties regarding the integration and potential synergies of the two brands. The lack of clarity on how Alani and Celsius will avoid brand cannibalization and the details of Alani’s distribution strategy contribute to these concerns.
Additionally, the performance of Celsius’s legacy business remains a critical factor in the rating. The declining scanner data and negative consumption trends raise questions about the company’s ability to maintain or grow its market share. While there are assumptions of improved EBITDA margins and theoretical EPS accretion from the acquisition, these are not currently reflected in the price objective. As a result, the Sell rating is maintained, with a price objective of $26, indicating a belief that the stock is overvalued at its current price.
According to TipRanks, Keypour is ranked #3852 out of 9385 analysts.