2024-05-28 12:18:29 ET
Celsius Holdings Inc (NASDAQ: CELH) is down more than 15% today after a Morgan Stanley analyst reiterated his cautious stance on the energy drink company.
Celsius stock could sink further to $75
Dara Mohsenian reiterated his “equal weight” rating on the Nasdaq listed firm this morning. His $75 price objective suggests another 5.0% downside from here.
The analyst cited data that suggests sales have lost some pace for his dovish view in a research note on Tuesday.
CELH percentage sales on promotion increased sequentially in the last three weeks, with CELH pricing down 7.0% year-over-year in the latest two weeks.
Despite today’s decline, Celsius stock is up close to 60% versus its year-to-date low in late January.
is losing market share
Dara Mohsenian sees further downside in Celsius Holdings also because its market share slipped from 10.85 to 10.5% in recent weeks.
Difficult comparisons in the coming quarters could be a headwind for the Florida based company, he added.
velocity was down 4.0% year-over-year in the latest week and 1.0% for the L4W, with 2-year average velocity growth +HSD reflecting strong year-ago growth.
All in all, the Morgan Stanley analyst sees a more balanced risk/reward in Celsius stock following a massive gain in 2024. Note that beverage giant PepsiCo has an 8.5% stake in that does not pay a dividend at writing.
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