Eric Serotta, an analyst from Morgan Stanley, maintained the Hold rating on Celsius Holdings. The associated price target was raised to $61.00.
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Eric Serotta has given his Hold rating due to a combination of factors surrounding Celsius Holdings’ recent strategic moves. The expanded partnership with PepsiCo is expected to enhance distribution capabilities for the Alani Nu brand and improve overall execution across Celsius’ portfolio. However, the transition to the PepsiCo distribution system may introduce short-term margin pressures, as noted by Celsius Holdings.
Additionally, while the acquisition of the Rockstar brand adds a legacy energy drink to Celsius’ lineup, the brand’s current performance has been declining, which could pose a limited drag on the company’s revenue. Despite these challenges, the potential for growth and improved performance in the long term is recognized, leading to a modest increase in the price target. Thus, the Hold rating reflects a balanced view of potential risks and opportunities for Celsius Holdings.
According to TipRanks, Serotta is an analyst with an average return of -6.4% and a 55.17% success rate. Serotta covers the Consumer Defensive sector, focusing on stocks such as Celsius Holdings, Primo Brands, and Brown-Forman B.