UBS Raises Celsius Holdings Price Target to $57, Maintaining Buy Rating Amid Positive Outlook

UBS raised Celsius Holdings' (CELH) price target from $49 to $57 with a Buy rating, citing a positive outlook. Analysts forecast an average price target of $47.08 with an upside of 5.93%. The estimated GF Value is $128.03, suggesting a 188.03% upside. The company reported a 7% decline in revenue to $329.3 million and a 41% increase in international revenue to $22.8 million.

UBS has raised its price target for Celsius Holdings (CELH) from $49 to $57, maintaining a Buy rating on the stock. This adjustment reflects a positive outlook on the company's future performance, according to UBS analysts [1].

Analysts across the board are bullish on Celsius Holdings. Based on a one-year price target from 18 analysts, the average target price is $47.08, with a high estimate of $58.00 and a low estimate of $32.51. The consensus recommendation from 21 brokerage firms is an "Outperform" status, with a rating of 2.1 on a scale of 1 to 5 [1].

GuruFocus estimates the GF Value for Celsius Holdings to be $128.03, suggesting a potential upside of 188.03% from the current price of $44.45. This value is calculated based on historical multiples, business growth, and future performance estimates [1].

In its latest earnings report, Celsius Holdings reported a 7% decline in revenue to $329.3 million, while international revenue grew by 41% to $22.8 million. The company also expanded its gross margin by 110 basis points to 52.3% and increased its cash position to $977 million [1].

The positive outlook is driven by several factors. Celsius Holdings successfully closed the acquisition of Alani Nu, adding a second billion-dollar brand to its portfolio. The company also launched new products, including CELSIUS HYDRATION, expanding into the fast-growing hydration powder category. Additionally, Celsius Holdings captured a 16.2% dollar share in the energy drink category, an 81-basis point increase year-over-year [1].

However, the company faced challenges in the first quarter, including a decline in revenue, slowed velocity, increased competition, and higher selling, general, and administrative expenses. The non-GAAP adjusted EBITDA margin decreased to 21.2% from 24.7% in the prior year, driven by organizational investments [1].

Celsius Holdings' stock closed at $44.44 in the latest trading session, marking a -2.35% move from the prior day. The company's upcoming EPS is projected at $0.23, signifying a 17.86% drop compared to the same quarter of the previous year. The Zacks Consensus Estimate for revenue is projecting net sales of $631.19 million, up 57.02% from the year-ago period. The Zacks Rank for Celsius Holdings is currently #3 (Hold) [2].

References:

[1] https://www.gurufocus.com/news/2984333/ubs-increases-price-target-for-celsius-holdings-celh-amid-positive-outlook-celh-stock-news

[2] https://finance.yahoo.com/news/celsius-holdings-inc-celh-stock-214502813.html