Stifel analyst Mark Astrachan lowered the firm’s price target on Celsius Holdings (CELH) to $51 from $61 and keeps a Buy rating on the shares. The firm reduced 2024-2025 estimates following company commentary at an investor conference that PepsiCo (PEP) will further reduce Celsius inventories by $100M-$120M in Q3. Stifel estimates Celsius’ retail sales have exceeded company shipments to PepsiCo by about $125M since the distribution changeover in 3Q22, indicating a meaningful reduction in inventory held by the Pepsi system in recent quarters, but it also understands Pepsi is maintaining contractual service standards for Celsius, suggesting additional inventory reductions are possible should sales trends weaken further.
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