Celsius Holdings initiated with an Overweight at JPMorgan

JPMorgan initiated coverage of Celsius Holdings (CELH) with an Overweight rating and $37 price target Energr drink category trends are improving and the stock is trading at a third of its peak of $96 in March, the analyst tells investors in a research note. The firm says Celsius is the third largest energy drink brand in the U.S, with an “on-trend positioning in a number of important secular consumer megatrends” like health and wellness, functionality, and zero sugar. JPMorgan thinks the deceleration in the energy drink category in the U.S. does not invalidate Celsius’ secular tailwinds that should lead to consistent sales growth within staples.