On Monday, Piper Sandler confirmed its positive stance on Celsius Holdings (NASDAQ:CELH), maintaining an Overweight rating with a $90.00 price target. Celsius Holdings has experienced a notable acceleration in sales growth over the recent four-week period, posting a 61.6% increase.
This follows a 77.1% rise in the preceding four weeks, a period which saw significant gains from the company's integration into a major distribution system.
Celsius's two-year average sales growth exhibited a slight deceleration, dropping to 92% in the latest four weeks from 101% previously. Despite this slight slowdown, the outlook for the company remains optimistic, with expectations for continued market share expansion.
The price target set by Piper Sandler is based on approximately 9.0 times the estimated 2025 enterprise value to sales, which is anticipated to be around $2,250 million. The calculation takes into account a net cash position of roughly $760 million and an estimated 23 million shares outstanding.
The company's growth trajectory is seen as sustainable over the long term, yet risks are acknowledged. The competitive landscape and shifts in consumer preferences are considered potential challenges that could impact Celsius Holdings' performance moving forward.
InvestingPro Insights
As Celsius Holdings (NASDAQ:CELH) continues to captivate the market with its rapid sales growth, real-time data from InvestingPro enriches the narrative of this high-flying company. With a market capitalization of $19.54 billion, CELH boasts a robust revenue growth of 101.65% over the last twelve months as of Q4 2023, underscoring the company's impressive expansion. This aligns with the optimistic view from Piper Sandler, as CELH's sales surge is not just a flash in the pan but part of a sustained growth pattern.
InvestingPro Tips indicate that analysts are expecting sales growth in the current year, which dovetails with the company's recent performance and the positive outlook presented by Piper Sandler. Moreover, the company's high return over the last year, with a 190.42% increase, is a testament to its momentum in the marketplace. This is further evidenced by a strong three-month price total return of 44.35%, showcasing CELH's attractiveness to investors.
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