Truist Financial analyst Bill Chappell has maintained their neutral stance on CELH stock, giving a Hold rating on February 18.
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Bill Chappell’s rating is based on a combination of factors influencing Celsius Holdings. Firstly, the company reported fourth-quarter results with net sales aligning with estimates, but showing a year-over-year decline, which raises concerns about the sustained growth trajectory of the company, particularly in the female energy drink segment. The recent acquisition of Alani Nu is a strategic move to capitalize on female consumers entering the energy drink market, yet the slowing sales growth and year-over-year decline in this segment pose questions about its future potential.
Moreover, while the acquisition minimizes integration risks due to maintaining separate distribution channels, it lacks the ability to leverage significant market scale, as both Celsius and Alani Nu will continue to compete for shelf space. The overall energy drink market is showing signs of maturity, with little indication of a rebound, and increased competition from major players like Monster and Red Bull could lead to a challenging promotional landscape, impacting profitability. Therefore, Bill Chappell recommends a Hold rating, suggesting investors wait for more clarity on market dynamics before making further investment decisions.
In another report released on February 18, Morgan Stanley also maintained a Hold rating on the stock with a $42.00 price target.
Based on the recent corporate insider activity of 72 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CELH in relation to earlier this year.