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On Monday, Stifel analysts revised their outlook on Celsius Holdings (NASDAQ:CELH), reducing the price target to $37 from the previous $45, while still upholding a Buy rating on the company’s shares. Currently trading at $22.41, the stock sits near its 52-week low of $21.65. According to InvestingPro data, analyst targets range from $26 to $62, suggesting potential upside despite recent volatility. The adjustment comes as Stifel anticipates a shift in Celsius’s sales growth patterns for the upcoming quarters of 2025.
The analysts project a decrease in sales growth for the first quarter of 2025 by 8%, which contrasts with the consensus expectation of a 4% increase. However, they predict a modest recovery in the second quarter with a 2% growth, which is slightly below the consensus forecast of a 5% rise. This conservative outlook is attributed to stronger growth anticipated in the second half of the year, benefiting from more favorable year-over-year comparisons. InvestingPro analysis indicates the company maintains strong financial health with a GREAT overall score, supported by impressive revenue growth of 19.36% over the last twelve months.
Stifel’s analysis suggests that the expected growth in the latter half of 2025 will compensate for the earlier sluggish performance, particularly referencing the impact of Pepsi-related destocking that occurred in the third quarter of 2024. The firm’s sales build-up is calculated based on the ongoing two-year compound annual growth rate (CAGR) of sales velocities and distribution points.
Despite the lowered price target, Stifel remains optimistic about the long-term prospects of Celsius Holdings. The analysts believe that the stock is likely to remain range-bound in the short term, pending observable improvements in sales and market share as indicated by U.S. scanner data. This sentiment reflects a cautious but still positive outlook on the company’s ability to navigate through the anticipated fluctuations in sales performance. InvestingPro Fair Value analysis suggests the stock is currently undervalued, with 13 additional ProTips and a comprehensive Research Report available for subscribers seeking deeper insights into this volatile but potentially promising investment.
In other recent news, Celsius Holdings Inc. has reached a settlement in a shareholder derivative lawsuit, involving corporate governance reforms and a payment of $987,500 for plaintiffs’ attorneys’ fees and expenses, according to a recent filing with the Securities and Exchange Commission. The settlement, which has been given preliminary approval by a Nevada court, is part of Celsius Holdings’ ongoing efforts to strengthen its corporate governance. In terms of financial analysis, Piper Sandler has adjusted its outlook on Celsius Holdings, reducing the price target to $33 while retaining an Overweight rating on the stock. This adjustment anticipates a potential increase in shipments for the company in 2025, which could lead to a growth rate of approximately 20%. TD Cowen, on the other hand, has revised its stance on Celsius Holdings, downgrading the company’s stock rating from ’Buy’ to ’Hold’ and revising its price target downward to $29.00. This comes in light of a deceleration in the company’s sales growth. Stifel has maintained a Buy rating and a price target of $45.00 for Celsius, citing the company’s innovation efforts and focus on key demographic targeting. Lastly, Truist Securities has sustained its Hold rating on shares of Celsius Holdings, with a consistent price target of $35.00. These are recent developments that investors should take note of.
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