## Celsius Holdings (CELH) Stock Takes a Hit on Inventory Concerns: Bank of America Cuts Estimates
Celsius Holdings (CELH) shares are experiencing a dip today as Bank of America has revised its outlook on the company, citing inventory challenges and slower growth. In a recent note, the investment firm maintained its sales estimate for Celsius’s third quarter of fiscal year 2024 at $289 million, but this figure reflects a significant $110 million reduction attributed to “too much inventory.”
Bank of America explained that Celsius has accumulated excess inventory due to slower growth, which is impacting its sales performance. This inventory buildup has led the bank to adjust its EBITDA and EPS estimates downwards. Specifically, the firm lowered its EBITDA estimate from $45 million to $25.5 million and reduced its EPS estimate from 12 cents to 7 cents.
Despite these concerns, Bank of America remains bullish about Celsius’s long-term prospects, highlighting the company’s ongoing efforts to reduce excess inventory. The bank also acknowledged Celsius’s commitment to investing in marketing to drive demand for its products, raising its estimates for the company’s quarterly Selling and Marketing expenses to $90 million.
How to Invest in Celsius Holdings (CELH):
For those interested in investing in Celsius Holdings (CELH), the process is relatively straightforward. You can purchase shares through a brokerage account, which can be opened through various online platforms. Many platforms also allow for fractional share purchases, providing an opportunity to invest in companies like Celsius even with a smaller amount of capital.
If you’re looking to speculate against the company’s stock price, options trading platforms or brokers offering short-selling capabilities are required. These platforms provide options for buying put options or selling call options, allowing investors to profit from a decline in the share price. However, it’s important to note that short-selling carries inherent risks and should be approached with caution.
Celsius Stock Price Performance:
At the time of writing, Celsius stock is trading at $34.48, down 0.99% for the day, according to data from Benzinga Pro. It’s important to remember that past performance is not indicative of future results, and investment decisions should be made based on thorough research and individual risk tolerance.