After further reviewing the firm’s model ahead of quarter-end, Morgan Stanley analyst Eric Serotta lowered the firm’s Q3 sales estimate for Celsius Holdings (CELH) by another 8% to reflect promotional accounting related to the previously disclosed PepsiCo (PEP) inventory reduction. The firm, which notes that its Q3 sales estimate of $278M compares to the $322M Visible Alpha consensus forecast, also lowered its Q3 gross margin estimate by 250 basis points to 46.4%, versus the 48.8% consensus. The firm, which doesn’t see a catalyst until Celsius’ trends in scanner data inflect positively, kept an Equal Weight rating and $50 price target on the shares, which are down 65c, or 2%, to $32.15 in Tuesday morning trading.
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