Celsius Holdings, Inc. (CELH) shares experienced a significant drop on Wednesday, falling nearly 12%, after the company revealed concerning sales figures during a fireside chat at the Barclays 17th Annual Global Consumer Staples Conference.
Celsius disclosed that sales to PepsiCo, Inc. (PEP) for the current quarter are expected to be down by a substantial $100 million to $120 million compared to the same period last year. This news sent shockwaves through the market, as PepsiCo is a major partner for Celsius.
Despite the initial shock, analysts remain largely optimistic about Celsius Holdings’ future prospects. Stifel analyst Mark Astrachan, while lowering the price target from $61 to $51, maintained a ‘Buy’ rating on the stock, suggesting that the Pepsi sales decline may be a temporary setback. Piper Sandler also reaffirmed its ‘Overweight’ rating, though they too lowered their price target from $65 to $50.
Overall, Wall Street analysts have an average 12-month price target of $67.67 on Celsius Holdings. This suggests a potential upside for the stock, despite the recent dip. While the stock is down year-to-date, analysts remain confident in the company’s long-term growth potential.
It’s important to remember that stock prices can fluctuate significantly, and past performance is not indicative of future results. Investing always carries inherent risks, and it’s crucial to conduct thorough research and consult with a financial advisor before making any investment decisions.
As of Thursday afternoon, Celsius Holdings shares were trading up 1.14% at $32.72.
