Energy drink sales in the U.S. dipped 1.1% year-over-year in the four weeks ending August 10, according to Nielsen. However, Celsius Holdings (CELH) outperformed its peers with an 8.8% jump in sales, although this was slower than the 12.3% growth it saw in the previous period. When breaking down the numbers even further, Celsius boosted its volume by 16.6% but saw its prices drop by 7.8%. Overall, this gave the brand a 9.6% share of the U.S. energy drink market. Still, CELH shares are down at the time of writing.
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Other brands that saw their sales rise included Bang Energy and Red Bull, which came in at 6% and 1.8%, respectively. Monster Beverage (MNST), which bought Bang Energy last year for $362 million, saw sales (excluding Bang) fall by 3.5%.
After the Nielsen report, Morgan Stanley kept its Equal-weight rating on Celsius Holdings. Analyst Eric Serotta mentioned that while Celsius could still grow its U.S. market share to the mid-teens, it might take longer than expected. He also pointed out the risks of slow category growth and tougher competition, which could hold Celsius back.
Is CELH Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on CELH stock based on 11 Buys, three Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 33% decline in its share price over the past year, the average CELH price target of $63.71 per share implies 59.2% upside potential.
