Celsius Holdings To Gain From Favorable Cost Trends, High Retail Sales Velocity: Analyst
Portfolio Pulse from Nabaparna Bhattacharya
ROTH MKM analyst Sean McGowan reiterated a Buy rating on Celsius Holdings, Inc. (NASDAQ:CELH), raising the forecast to $90. Celsius Holdings surpassed Q4 earnings estimates with a 95% year-over-year revenue increase, driven by distribution expansion, increased shelf space, and high retail sales velocity. McGowan projects future growth from further shelf space gains, velocity, and international expansion, forecasting a revenue growth of just under 50% in 2024. Despite favorable cost trends, international expansion costs are expected to offset gains, with gross margin percentages projected just below 48% in '24 and '25. CELH shares dropped 4.72% to $77.77.
March 01, 2024 | 7:13 pm
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Celsius Holdings, Inc. (NASDAQ:CELH) received a Buy rating from ROTH MKM analyst Sean McGowan, with a raised forecast to $90, following a Q4 earnings beat and a 95% YoY revenue increase. Future growth is expected from shelf space gains, velocity, and international expansion, despite a 4.72% drop in share price to $77.77.
The positive outlook from the analyst, including the raised forecast to $90, indicates strong future growth potential for Celsius Holdings, despite the short-term price drop. The company's impressive Q4 earnings beat and significant revenue increase, along with strategic plans for further expansion, suggest a positive short-term impact on the stock. However, the current share price drop may present a buying opportunity for investors, reflecting the analyst's confidence in the stock's future performance.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100