Celsius selloff on Pepsi amendment an overrection, says TD Cowen

TD Cowen says Celsius Holdings (CELH) amended its distribution agreement with PepsiCo (PEP) to add an incentive program, which drove the shares down 8.5% on Wednesday and 0.6% on Thursday. The selloff is an overreaction and should be used as a buying opportunity, the analyst tells investors in a research note. After speaking with management, the firm believes the move further aligns PepsiCo’s interests with Celsius’ growth. TD does not expect any notable impact to Celsius’ margins from the news and believes the amendment is not a downside catalyst.