Needham analyst Gerald Pascarelli initiated coverage on Celsius Holdings, Inc. (NASDAQ:CELH) with a buy rating and a price target of $38.
The analyst says that as the third largest player in the energy drinks sector, CELH is well-positioned to benefit from a healthier rebound in the category and growing demand for sugar-free products, creating a favorable environment for acceleration of revenues as well as easier comparisons from one year to the next.
The analyst writes that although the company recently posted its first year-over-year stock loss, she is encouraged by the category's return to a high single-digit growth rate.
If this trend continues, CELH should benefit from a healthier market context, easier compositions and upcoming innovations planned for 2025, adds the analyst.
Additionally, inventory optimization issues appear to be resolved, which should improve alignment between sales and reported results.
The analyst estimates full-year 2024 revenue and EPS at $1.365 billion and $0.68 and $1.548 billion and $0.93 for fiscal 2025, respectively.
Last month, the company reported third-quarter earnings per share of $0.00, missing the earnings per share by $0.04. Missed quarterly sales of $265.70 million (down 31%) analyst consensus of $267.11 million.
There are a few decisions an investor can make to decide whether a stock is a good buy. In addition to valuation metrics and price action you can find on Benzinga quote pages – like Securities in Celsius securitiesFor example, there are factors such as whether or not a company pays a dividend or purchases a large portion of its shares each quarter.
These are known as capital allocation programs. Celsius Holdings does not pay dividends, but obviously has several ways to return value to shareholders. Be sure to search Benzinga dividend schedule for the next company that is scheduled to pay a dividend and determine what type of return you can earn by owning a stock of the company.
For example, if you want to earn an annualized return of 14.2%, you will need to purchase one share of Ellington Residential before December 31, 2024. Once you do this, you can expect to receive a nominal payment of $0.08 on January 27, 2025.
Buyback programs are obviously different and very variable. A company can approve a repurchase program and purchase shares as it sees fit during the period in which the repurchase was authorized. By browsing the latest news on Securities in Celsius securities will often be effective whether or not the company has recently approved a repurchase program. Buyback programs typically support stock prices, thereby serving as a safety net for demand.
#Energy #Drink #Company #Celsius #Poised #Drive #Market #Growth #Analyst #Sees #Significant #Upside #Potential
,
