Index falls as earnings results weigh; pound above $1.33, Bodycote soars
On Wednesday, Jefferies analyst Kaumil Gajrawala adjusted the price target for Celsius Holdings (NASDAQ:CELH), a beverage company, reducing it to $33.00 from the previous target of $40.00. The stock, currently trading at a P/E ratio of 30.8 with a market capitalization of $5.3 billion, has seen its share price decline by over 64% in the past year. Despite the price target cut, the firm continues to recommend the stock as a Buy.
Gajrawala noted a deceleration in the company’s growth, now turning negative, and pointed out issues in distribution as total distribution points (TDPs) are on the decline both in absolute terms and relative market share. According to InvestingPro data, the company’s revenue growth rate stands at 19.36%, though recent trends suggest potential challenges ahead. Additionally, the velocity of the product, which measures the rate at which goods are sold and replaced over a given period, has not yet stabilized.
In light of these observations, Jefferies has revised its Q4/2025 North American growth estimate for Celsius Holdings downward by 2 percentage points (pp) and 4pp to -8% and 7%, respectively. This contrasts with the consensus estimate of -8% for Q4 and a more optimistic 13% for 2025.
Despite the current challenges, Gajrawala suggests that the market may have overly penalized Celsius Holdings’ shares. The company maintains strong financial health, holding more cash than debt and showing liquid assets exceeding short-term obligations. For the stock to gain traction, he believes that signs of growth inflection and sequential market share gains are necessary. Get deeper insights into CELH’s valuation and 15+ exclusive ProTips with InvestingPro. The analyst indicated that there would be more to discuss regarding Celsius Holdings at the upcoming Consumer Analyst Group of New York (CAGNY) conference this week.
In other recent news, Celsius Holdings has experienced several noteworthy developments. Stifel analysts revised their outlook on the company, reducing the price target to $37 while maintaining a Buy rating. This adjustment comes as Stifel anticipates a shift in Celsius’s sales growth patterns for 2025, with a decrease in sales growth for the first quarter and a modest recovery in the second quarter.
In addition, Celsius has settled a stockholder derivative lawsuit, involving corporate governance reforms and a payment of attorneys’ fees. This settlement is part of Celsius Holdings’ ongoing efforts to address concerns raised by its shareholders.
Analyst firms Piper Sandler and TD Cowen also adjusted their outlook on Celsius. Piper Sandler reduced the price target to $33 but retained an Overweight rating, while TD Cowen downgraded the stock’s rating from ’Buy’ to ’Hold’ and revised its price target downward to $29.00, citing a slowdown in sales growth and potential market risks.
Lastly, Stifel reaffirmed its positive stance on Celsius, maintaining a Buy rating and a price target of $45.00. This followed discussions with Celsius management, where strategies to reverse the trend of declining sales velocities were highlighted. These are the recent developments concerning Celsius Holdings.
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