7) Celsius Holdings, Inc. (NASDAQ:CELH)
Average Upside Potential: 53.70%
% Fall on a YTD Basis: ~44%
Number of Hedge Fund Holdings: 27
Celsius Holdings, Inc. (NASDAQ:CELH) is engaged in developing, processing, marketing, distributing, and selling functional energy drinks and liquid supplements.
The stock price of Celsius Holdings, Inc. (NASDAQ:CELH) saw significant selling pressure on the YTD basis as a result of the competitive beverage sector and a shift in consumer trends. The company has been subject to a challenging environment because of an expected increase in promotional discounting and a slowdown in the US retail trends. Collectively, these factors might impact the company’s topline numbers for 2024 and 2025, resulting in a cautious outlook. Moreover, the company continues to challenges related to the financial adjustments as a result of inventory reductions by PepsiCo. This might weigh over the sales and EBITDA for the upcoming quarters.
On the other hand, Wall Street experts opine that the current juncture of Celsius Holdings, Inc. (NASDAQ:CELH)’s stock offers a strong value-buy opportunity. They believe that Celsius Holdings, Inc. (NASDAQ:CELH) should be able to maintain its position as the category growth leader and expand its shelf presence. The company’s strong partnership with PepsiCo and a strategy to execute growth-driving programs should continue to act as tailwinds, which might get reflected in the stock price moving forward.
Celsius Holdings, Inc. (NASDAQ:CELH) plans to invest in growth and monitor raw material costs, and it is aiming for gross margins in the high 40s – 50s range in H2 2024. The company has also announced new flavours and market expansions, which include the UK, Ireland, Australia, New Zealand, and France. Celsius Holdings, Inc. (NASDAQ:CELH) targets to stabilize and grow the market share via strategic investments and promotions.
As per Wall Street, the shares of Celsius Holdings, Inc. (NASDAQ:CELH) have an average price target of $49.31. As per Insider Monkey’s 2Q 2024, 27 hedge funds (out of 912 tracked by Insider Monkey) held 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.”
