Aaron Davidson
Celsius Holdings (NASDAQ:CELH) edged slightly higher on Tuesday after Piper Sandler defended the beverage stock after its recent selloff.
Analyst Michael Lavery and team continue to believe Celsius Holdings (CELH) can drive sustainable, volume-driven share gains with near-term domestic growth and long-term international growth. Lavery noted that CELH may have more uneven U.S. market share gains after lapping up ~500 points in 2023, but thinks the company is still well-positioned to continue taking share. Lavery said CELH remains the best growth story in the consumer sector with a long runway of momentum still ahead.
“While we do expect growth to slow to 40-45% in 2024, this pace is still more than 4x the average of consumer growth comps. Its two-year average growth slowed more modestly on a sequential basis to +119% from +122% in the prior four-week period but remains robust.”
Piper Sandler has an Overweight rating on CELH and price target of $76. Short interest on CELH stands at 25.6% of the total float. The energy drink maker is not due to report earnings until the first week of March. Shares were up 0.40% in afternoon trading on Tuesday.