Analysts at investment firm Jefferies, led by Kaumil Gajrawala, began their coverage of fitness drink manufacturer Celsius Holdings (NASDAQ:CELH) with a Buy rating and a price target of $217. Despite the bullish prediction, CELH shares fell over 5% in Monday’s trading session.
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Indeed, the analysts said Celsius Holdings can grow its market share in the Energy Drinks segment, which currently sits at 9%, thanks to its distribution partnership with Pepsi. Indeed, Gajrawala forecasts revenue to reach $3.3 billion by 2027, equating to a CAGR of 26% from 2023 levels.
Furthermore, Celsius only holds a 4% market share in the $81 billion “Energy+” sector. The analyst added that this segment, comprised of sports drinks and RTD tea/coffee, is 3.6 times larger than the energy drinks sector. Therefore, there is significant room for growth.
In addition, Gajrawala is optimistic about Celsius’ expansion into the Canadian and European markets, anticipating that 6% of its sales will come from those markets by 2027.
What is the Future Stock Price for CELH?
With six Buys, CELH has a Strong Buy consensus rating on TipRanks. The average CELH price target of $192.67 per share implies 17.18% upside potential from current levels. Meanwhile, CELH stock has gained 16.8% so far this year.
