J.P. Morgan analyst Andrea Faria Teixeira has maintained their bullish stance on CELH stock, giving a Buy rating today.
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Andrea Faria Teixeira’s rating is based on Celsius Holdings’ strong financial performance and strategic acquisition plans. The company reported better-than-expected revenue and earnings for the fourth quarter of 2024, with adjusted EPS and EBITDA figures surpassing projections. This positive outcome was driven by higher-than-anticipated gross margins and lower SG&A expenses, although partially offset by some below-the-line items. Furthermore, international revenues showed significant growth, highlighting Celsius Holdings’ expanding market presence outside North America.
Additionally, the acquisition of Alani Nu is a pivotal factor in the Buy rating. The transaction, valued at $1.65 billion net of tax benefits, is expected to be accretive to cash EPS in the first year and bring about substantial cost synergies. The strategic move is anticipated to enhance Celsius Holdings’ market position and provide further growth opportunities. The deal’s financing structure, combining cash and stock, along with Alani Nu’s impressive revenue growth and market share gains, underscores the potential long-term benefits for Celsius Holdings.
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.