Growth stock CELH down 60% from highs, facing challenges in energy drink market.

From Nasdaq.: 2024-08-09 17:27:38

Celsius Holdings, Inc. (CELH) is a company that produces energy drinks and nutritional supplements, with its flagship product being CELSIUS. The company has a market cap of $9.22 billion and sells its products through various channels.

CELH stock has dropped by 30% this year and is trading near its 52-week lows, down over 60% from its peak. Despite beating revenue estimates in the second quarter, concerns about slowing sales and inventory buildups have impacted the stock.

Analysts have downgraded Celsius stock, with Bank of America giving it a “Sell” rating and a price target of $32. Other firms still recommend a “Buy,” but with reduced price targets. The stock’s premium valuation and forecasted revenue growth slowdown are causing uncertainty.

Management at Celsius has expressed concerns about inventory headwinds from PepsiCo and the stagnant growth in the energy drink category. While the company’s recent financial performance has been solid, there are challenges ahead that are affecting investor sentiment.



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