TD Cowen analyst Robert Moskow maintained a Buy rating on Celsius Holdings today and set a price target of $72.00.
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Robert Moskow has given his Buy rating due to a combination of factors, primarily centered around Celsius Holdings’ strategic partnership with PepsiCo. This agreement positions Celsius as the ‘energy drink captain’ for PepsiCo, allowing it to oversee the execution of a combined energy drink portfolio, which now includes Rockstar. The partnership is expected to accelerate growth for Alani Nu through expanded distribution channels, particularly in foodservice and convenience stores, leveraging PepsiCo’s extensive DSD network.
Furthermore, the increased equity stake by PepsiCo, now at 11%, signifies a strong vote of confidence in Celsius’ potential. The transaction is anticipated to positively impact Celsius’ cash EPS within the first year, making it a compelling strategic move for both companies. This collaboration not only enhances Celsius’ market control and reduces competition friction but also provides PepsiCo with a stake in Celsius’ success, while improving Rockstar’s market positioning.
Moskow covers the Consumer Defensive sector, focusing on stocks such as Celsius Holdings, Conagra Brands, and JM Smucker. According to TipRanks, Moskow has an average return of 3.1% and a 47.33% success rate on recommended stocks.
In another report released today, Roth MKM also maintained a Buy rating on the stock with a $70.00 price target.