Celsius Holdings (CELH – Research Report), the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst Bill Chappell from Truist Financial upgraded the rating on the stock to a Buy and gave it a $45.00 price target.
Bill Chappell has given his Buy rating due to a combination of factors including the strategic acquisition of Alani Nu, which strengthens Celsius Holdings’ position in the female segment of the energy drink market. The acquisition, valued at $1.65 billion, is seen as financially sound with a favorable leverage ratio and impressive growth metrics. Alani Nu’s rapid expansion and significant year-over-year growth further enhance the attractiveness of the deal.
Moreover, the combined market share of Celsius and Alani Nu in the U.S. energy drink category is substantial, particularly among female consumers, where they hold a dominant position. Despite potential competitive pressures from established brands like Monster and Red Bull, Chappell believes these efforts will have limited impact on the female demographic. The anticipated growth in the female segment of the market is expected to drive future gains, making the investment in Celsius Holdings a promising opportunity.
Chappell covers the Consumer Defensive sector, focusing on stocks such as Celsius Holdings, Flowers Foods, and Monster Beverage. According to TipRanks, Chappell has an average return of 1.6% and a 50.00% success rate on recommended stocks.
In another report released on March 27, Ladenburg Thalmann & Co. also maintained a Buy rating on the stock with a $58.00 price target.