Gerald Pascarelli, an analyst from Needham, reiterated the Buy rating on Celsius Holdings (CELH – Research Report). The associated price target remains the same with $45.00.
Gerald Pascarelli has given his Buy rating due to a combination of factors that suggest a positive outlook for Celsius Holdings despite a slow start to the year. Although the company’s revenue fell short of expectations, with a 7.4% decline year-over-year, the gross margin exceeded estimates, indicating improved cost management. This margin improvement, driven by reduced raw materials and packaging costs, provides a solid foundation for future profitability.
Looking ahead, Pascarelli anticipates a recovery in core sales as new product innovations gain traction and shelf resets are implemented. The company is expected to benefit from easier sales comparisons in the warmer months, and the full quarter impact of the Alani acquisition, which is experiencing rapid growth, will further support revenue growth. Despite the initial challenges, Pascarelli’s confidence in the company’s long-term potential remains strong, justifying the Buy rating.
Based on the recent corporate insider activity of 54 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CELH in relation to earlier this year.