On Monday, Piper Sandler maintained an Overweight rating for Celsius Holdings (NASDAQ:CELH) stock with a steady price target of $90.00.
The firm's analysis indicates that Celsius is positioned for ongoing, volume-driven market share growth, with a focus on both immediate growth in the U.S. and long-term expansion internationally.
The company's U.S. retail sales growth slowed to approximately 41% in the latest four-week period ending May 19, 2024, down from about 49% in the preceding four weeks.
Despite the deceleration, sales have risen by around 43% for the seven weeks that roughly correspond to the second quarter of 2024 to date, which is still above the firm's sales estimates.
The reported deceleration aligns with expectations and does not detract from the fact that growth continues to surpass projections. Furthermore, when evaluated on a two-year average, the growth rate remains robust at 88%, marginally higher than the 87% observed in the previous period.
Piper Sandler reaffirms its sales forecast for Celsius, maintaining an estimated revenue of approximately $1,590 million for the year 2024 and around $1,845 million for 2025.
The $90 price target is grounded on an estimated 11 times the 2025 expected enterprise value to sales ratio. The firm's stance on Celsius Holdings remains firmly Overweight, signaling confidence in the company's growth trajectory.
InvestingPro Insights
As Piper Sandler maintains an optimistic outlook on Celsius Holdings (NASDAQ:CELH), noting its potential for sustained volume-driven market share growth, real-time data from InvestingPro provides additional context to this analysis. The company boasts a robust market capitalization of $18.64 billion and has experienced significant revenue growth, with an impressive 81.22% increase over the last twelve months as of Q1 2024. This aligns with the firm's expectations of strong sales, further evidenced by a gross profit margin of nearly 50% in the same period.
An InvestingPro Tip highlights that analysts are forecasting sales growth in the current year, which supports Piper Sandler's revenue projections for 2024 and 2025. Additionally, the company's strategic cash management is reflected in its balance sheet, holding more cash than debt, a reassuring sign for investors looking at the company's financial health. For those interested in deeper analysis, there are 18 additional InvestingPro Tips available, which can be explored for a more comprehensive understanding of Celsius Holdings' performance and potential.
Investors may also find it compelling that despite a recent price dip, the stock has yielded a substantial one-year return of 73.66% as of the date provided. The current P/E ratio, while high at 85.66, is balanced by a low PEG ratio of 0.4, indicating that the stock's earnings growth rate may justify the earnings multiple. To gain access to the full suite of insights and tips, including those not covered here, readers can use the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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