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Maxim Group downgraded Celsius Holdings (NASDAQ: CELH) after the beverage stock has smashed 40% year-to-date in 2023. The company called Celsius (CELH) has somewhat assessed its current trading level and advised investors to wait for a better entry point.
In general, the Of note, CELH’s fundamentals continue to look strong, with CELH continuing to gain market share, outpace the broad beverage category in sales growth in multiple channels, and increase brand momentum. Benefits from PepsiCo (PEPIt is also said that the distribution deal is still flowing. However, the strong momentum is seen to be priced into the share price.
“Specifically, based on our 2024 revenue estimate, CELH is trading at an EV/revenue multiple of 7.7x. This compares to what we think is the closest company, Monster Beverage, which is trading at a 2024 EV/revenue multiple of 7.2x.”
Vendetti and his team also believe that a highly competitive landscape combined with regulatory scrutiny could limit CELH’s upside. Maxim has set a $140 price target on Centennial Holdings (CELH).
Shares of Celsius Holdings (CELH) fell. 0.15% On Wednesday afternoon trading. Beverage stocks are up more than 92% over the past 52 weeks, which roughly matches CELH’s year-over-year increase in market share in the energy drink segment. Short interest on CELH still exceeds 21% of the total float.