CELH - Celsius Holdings May Be Too Frothy Here Wait For A Deep Pullback
2024-03-29 09:15:00 ET
Summary
- Celsius could be the next big thing in the global energy drink market, attributed to its impressive share gains against incumbents, such as MNST and Red Bull.
- Much of the tailwinds are attributed to successful marketing efforts, strategic partnerships, and expansion in distribution channels, supporting the management's commitment to delivering high growth.
- Combined with its growing net cash on balance sheet and zero debt, it is unsurprising that CELH has rallied tremendously while being awarded the premium growth valuations.
- However, this also means that the stock is overly expensive here, worsened by the lofty consensus forward estimates and elevated short interest.
- As a result of the potential volatility, we do not recommend anyone to add here, while recommending traders to take some of their gains here.