Jefferies lowered the firm’s price target on Celsius Holdings (CELH) to $53 from $68 and keeps a Buy rating on the shares after the company reported Pepsi (PEP) is further reducing inventory by $100M-$120M. On a base of about $400M this impact “is massive and will result in Celsius’ first sales decline since 2Q18,” says the analyst, who adds that “it gets worse down the P&L.” The firm remains positive long-term, but cut its target multiple given the category slowdown and lack of visibility in the supply chain, the analyst tells investors.
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