Shares of energy drink company Celsius Holdings (NASDAQ:CELH) are down over 4% at the time of writing due to cautious comments from Morgan Stanley. Analyst Eric Serotta pointed to scanner data showing that sales growth slowed sequentially for the four weeks ending June 29, while market share dipped slightly to 9.7% from 10.7% in early May. Additionally, Celsius’ year-over-year velocity fell by the mid-teens, which means that products are being sold at a slower rate than before.
Serotta rates Celsius as Equal-weight but sees significant growth potential in the U.S. through increased items per store, better cooler placements, and growth in non-tracked channels. However, he cautions that the company will face tough comparisons in the coming quarters as it laps the distribution and velocity growth achieved since partnering with PepsiCo.
Insider Activity
When looking at insider activity, there seems to be a lot of selling. In fact, insiders have sold $547.6M worth of shares in the past three months. Therefore, confidence from within appears to be very low, as the Insider Confidence Signal for CELH stock is very negative and below the sector average, as shown in the picture below:
What Is the Stock Price Prediction for CELH?
Overall, analysts have a Moderate Buy consensus rating on CELH stock based on nine Buys, four Holds, and zero Sells assigned in the past three months. After an 8% rally in its share price over the past year, the average CELH price target of $80.33 per share implies 48.65% upside potential.
