Hold Rating for Celsius Holdings Amidst Declining Sales and Market Share Challenges

Analyst Eric Serotta of Morgan Stanley maintained a Hold rating on Celsius Holdings (CELH – Research Report), retaining the price target of $42.00.

Eric Serotta has given his Hold rating due to a combination of factors affecting Celsius Holdings. First, the company’s year-over-year sales have experienced a decline, with a decrease in market share by 130 basis points compared to the previous year. Although there was some growth in total distribution points, this growth has slowed, and the overall sales velocity remains down mid-teens year-over-year.
Furthermore, despite the company’s efforts, the underlying growth remains weak, with a flat two-year average in sales. While the stock price has significantly dropped by approximately 80% from early 2024 highs, Serotta does not see an immediate catalyst for recovery until there is a positive change in scanner data trends. Additionally, the analyst notes the potential risk of further market share stagnation or decline due to increased competition in the short term.