Celsius Holdings (CELH – Research Report), the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst Gerald Pascarelli from Needham reiterated a Buy rating on the stock and has a $38.00 price target.
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Gerald Pascarelli has given his Buy rating due to a combination of factors, primarily centered around Celsius Holdings’ strategic acquisition and impressive financial performance. The recent acquisition of Alani Nu for $1.8 billion positions Celsius to benefit from Alani’s rapid growth and significant market presence, enhancing its scale and market share in the U.S. energy sector. This acquisition is particularly strategic as it enables Celsius to break through the double-digit market share barrier and increase its appeal among female consumers.
Additionally, the financials surrounding the acquisition are favorable, with the deal being funded through a balanced approach of cash and stock, while maintaining a manageable net leverage ratio. Furthermore, Celsius Holdings reported strong fourth-quarter earnings that exceeded market expectations, with notable revenue and margin performance. The combination of strategic expansion and robust financial results underpins Pascarelli’s confidence in the stock’s potential, leading to the reaffirmation of the Buy rating.
In another report released yesterday, Jefferies also maintained a Buy rating on the stock with a $33.00 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.