U.S. stocks edge higher; solid earnings season continues
Investing.com - Needham has raised its price target on Celsius Holdings (NASDAQ:CELH) to $55.00 from $47.00 while maintaining a Buy rating on the energy drink maker’s stock. The company, currently valued at $11.9 billion, has demonstrated impressive momentum with a 72% gain over the past six months.
The research firm cited accelerating topline growth as the primary reason for the increased target, expressing optimism about the company’s outlook for the remainder of the year. According to InvestingPro data, analysts expect sales to grow by 61% this fiscal year, supporting Needham’s bullish stance.
For the second quarter, Needham is modeling revenue of $676 million, approximately 6% ahead of Wall Street consensus but aligned with what it estimates is the current buy-side expectation range of $670-680 million. The company maintains strong financial health, with InvestingPro analysis showing a "GREAT" overall score and more cash than debt on its balance sheet.
Needham believes Celsius is well-positioned to exceed expectations based on what it describes as "the degree of conservatism" embedded in its estimates, despite acknowledging that sentiment around the stock is already very high.
The firm reiterated Celsius as a conviction list pick, predicting sustained share price momentum as "both brands continue to accelerate in tandem and the core closes in on regaining share of the category."
In other recent news, Jefferies has raised its price target for Monster Beverage (NASDAQ:MNST) to $74, maintaining a Buy rating. The firm attributes this to the accelerating growth in the energy drink category, which is expanding at a rate of 15%. Jefferies also highlighted the strength of the category, mentioning Monster Beverage as a key player alongside other brands. Meanwhile, Celsius Holdings received a price target increase from Jefferies to $54, citing improved distribution as a significant growth driver for the company. Morgan Stanley (NYSE:MS) reiterated an Equalweight rating on Celsius, noting strong sales growth, though with a slight deceleration in recent weeks. TD Cowen maintained its Buy rating on Celsius, expressing confidence in the brand’s growth trajectory and potential distribution opportunities following the acquisition of Alani Nu. Additionally, Stifel resumed coverage of Celsius with a Buy rating, expecting sales growth to benefit from innovation and marketing initiatives. The acquisition of Alani Nu is seen as enhancing Celsius’s market position, with profit growth anticipated from synergies in 2026.
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