Kaumil Gajrawala, an analyst from Jefferies, maintained the Buy rating on Celsius Holdings. The associated price target remains the same with $64.00.
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Kaumil Gajrawala has given his Buy rating due to a combination of factors that highlight the strategic advantages for Celsius Holdings. The recent acquisition of Rockstar and the integration into PepsiCo’s distribution network is expected to significantly enhance Celsius’s market share, bringing it to approximately 20%. This move not only strengthens the alignment between Celsius and PepsiCo but also increases PepsiCo’s ownership stake, which is seen as a positive development for both companies.
Furthermore, the acquisition is anticipated to accelerate revenue growth and improve margins as the business integrates. Although initial transition costs may impact short-term earnings, the long-term financial outlook is promising, with expectations of accretive benefits in the first full year post-acquisition. The strategic partnership with PepsiCo also positions Celsius as a more competitive player in the energy drink market, with increased control over retail strategies, making it a formidable competitor in the sector.
In another report released on August 19, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $69.00 price target.