Celsius Holdings (NASDAQ:CELH) has been making big moves in the energy drink market and is set for strong growth over the next few years. However, according to top-rated Truist analyst Bill Chappell, it might be tough to see more gains in the short term. In fact, he rates the stock as a Hold with a $60 price target and notes that while Celsius has hit an impressive 11.5% market share, gaining more ground won’t be easy. As a result, shares fell over 6% in today’s trading.
In order to keep growing, Celsius needs to win over loyal Monster (NASDAQ:MNST) and Red Bull fans and attract new customers at the same pace as in recent years. Its partnership with Pepsi (NASDAQ:PEP) has helped boost its presence in convenience stores, which are usually dominated by big brands.
However, Chappell pointed out that Celsius’ growth is tied to how well Monster does and the overall demand for energy drinks. For Celsius’ stock to really improve, Monster’s stock needs to stabilize since Celsius is valued in comparison to Monster and the energy drink market as a whole. Unfortunately, MNST stock continues to struggle, as it is down over 13% on a year-to-date basis.
It’s worth noting that, so far, Chappell has enjoyed a 55% success rate on his ratings, with an average return of 5.3% per rating.
What Is the Stock Price Prediction for CELH?
Turning to Wall Street, 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, as indicated by the graphic below. After a 14% rally in its share price over the past year, the average CELH price target of $82 per share implies 45.70% upside potential.
