10 Stocks with Biggest Upside Potential According to Hedge Funds

7) Celsius Holdings, Inc. (NASDAQ:CELH)

Average Upside Potential: 65.29%

Number of Hedge Fund Holders: 27

Celsius Holdings, Inc. (NASDAQ:CELH) is engaged in developing, processing, marketing, distributing, and selling functional energy drinks and liquid supplements in the US, Australia, New Zealand, Canada, Europe, Middle Eastern, Asia-Pacific, and internationally.

Wall Street analysts believe that Celsius Holdings, Inc. (NASDAQ:CELH) should continue to maintain its position as the category growth leader and expand its shelf presence. Its strong partnership with PepsiCo and a strategy to execute growth-driving programs should continue to act as growth enablers, which might get reflected in the stock price.

Celsius Holdings, Inc. (NASDAQ:CELH) focuses on investing in growth and monitoring raw material costs. The company is targeting gross margins in the high 40s – 50s range in H2 2024. It has also announced new flavours and market expansions, which include the UK, Ireland, Australia, New Zealand, and France. Wall Street expects that Celsius Holdings, Inc. (NASDAQ:CELH) should be able to stabilize and grow its market share via strategic investments and promotions.

In Q2 2024, the company’s revenue went up by 23% to $402.0 million as against $325.9 million for the prior-year period. This increase stemmed from North American business and its success in sustaining consumer demand growth. Its gross profit as a percentage of revenue came in at 52.0% for the three months ended June 30, 2024, reflecting a rise from 48.8% for the prior-year period. This was due to freight optimization and lower materials costs.

BNP Paribas assumed coverage on the shares of Celsius Holdings, Inc. (NASDAQ:CELH) on 24^th June. They gave an “Outperform” rating and a $87.00 price target. As per Insider Monkey’s Q2 2024 data, 27 hedge funds reported owning stakes in the company.

Fred Alger Management, an investment management company, released its second quarter 2024 investor letter. Here is what the fund said:

“Celsius Holdings, Inc. (NASDAQ:CELH) engages in the development, marketing, sale, and distribution of functional drinks and liquid supplements. It also offers post-workout functional energy drinks and protein bars. During the quarter, shares detracted from performance after the company reported fiscal first quarter revenues below analyst estimates. The revenue shortfall was attributed to ongoing inventory management challenges with PepsiCo, which decelerated year-over-year revenue growth from over 100% to approximately 37%. Despite the near-term growth slowdown, we believe Celsius remains well positioned to potentially capture market share within the large energy and soft drink industry over the long-term.”