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Celsius Holdings , Inc. (NASDAQ:CELH) stock has experienced a significant downturn, touching a 52-week low of $25. Despite the decline, InvestingPro analysis reveals the company maintains a "GREAT" financial health score, with a robust current ratio of 4.71 and more cash than debt on its balance sheet. This latest price level reflects a stark contrast from the company's performance over the past year, with Celsius Holdings witnessing a substantial 1-year change, plummeting by -52.05%. Investors are closely monitoring the stock as it navigates through this period of volatility, with market analysts scrutinizing the factors that could have contributed to such a steep decline in value. The company, known for its fitness drinks, has maintained impressive revenue growth of 19.36% over the last twelve months and commands a market capitalization of nearly $6 billion. According to InvestingPro's Fair Value analysis, the stock currently appears undervalued, with 15+ additional ProTips available for subscribers.
In other recent news, Celsius Holdings has experienced a significant decrease in third-quarter revenue for 2024, falling 31% to $265.7 million from $385 million in the same quarter last year. The company also reported a sharp decline in net income to $6.4 million, down 92% from the previous year's $83.9 million. As a response to these figures, TD Cowen adjusted its stance on the company, moving from 'Buy' to 'Hold' and revising its price target downward to $29.00, citing a sales slowdown and market risks.
Meanwhile, other firms such as Stifel, Needham, and JPMorgan maintained or initiated a 'Buy' rating on Celsius Holdings, citing innovation efforts and improving category trends. On the other hand, Deutsche Bank (ETR:DBKGn) initiated coverage with a 'Hold' rating, citing potential for a rebound in the energy drink sector by 2025.
In recent developments, Celsius management has outlined a series of marketing and innovation strategies intended to reverse the trend of declining sales velocities. The company expressed expectations for improved sales velocities in 2025, with plans to adjust its media mix to better target key demographics and increase purchase frequency. These are the recent developments for Celsius Holdings.
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