Morgan Stanley says Celsius management says incentives don’t hurt margin outlook

After Celsius (CELH) filed an 8-K after the close with an amendment to its distribution agreement with PepsiCo (PEP) that outlines a new incentive program, Morgan Stanley analyst Eric Serotta spoke with Celsius management, who said that the new program should help it achieve its long-term growth aspirations. Importantly, management said the program doesn’t change the company’s long-term margin potential or short-term margin outlook, as there are mechanisms in the program for both parties to benefit financially if certain key performance indicators are reached, noted the analyst, who maintains an Equal Weight rating and $75 price target on Celsius shares.