2024-02-19 08:30:00 ET
Summary
- Celsius Holdings, Inc. stock has defied gravity and outperformed the S&P 500 despite a momentary decline in December 2023.
- CELH has enjoyed market share gains and a distribution partnership with PepsiCo but faces challenges from competitors like Monster Beverage and Red Bull in the global market.
- CELH's expensive valuation and potentially significant resistance at the $70 level suggest a highly unfavorable risk/reward profile.
- I argue that investors sitting on significant gains should consider reallocating their exposure before the dominoes crumble.
- Downgrade to Sell.
Celsius Holdings, Inc. ( CELH ) investors have seen the stock continuing to defy gravity, notwithstanding my caution on CELH in my previous update in December 2023. After suffering a momentary decline of more than 30% from CELH's September 2023 as it bottomed out at the $48 level, buyers returned aggressively. Consequently, CELH outperformed the S&P 500 ( SPX ) ( SPY ) significantly....
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For further details see:
Celsius: Don't Fantasize Over Its Global Expansion Plans (Downgrade)