Celsius Stock Slips On Analyst Downgrade Amid Rising Competition: Retail Mood Dampens

synopsis

Shares of Celsius Holdings (CELH) slipped more than 5% on Wednesday after brokerage firm TD Cowen downgraded its stock to ‘hold’ from ‘buy,’ dampening retail sentiment.

TD Cowen also cut its price target to $29 from $40, Fly.com reported. According to the report, TD Cowen’s retail tracking data showed a decline in the company's sales growth to 0.3% in the last four weeks ending January 11.

With Celsius shares well below its highs, valuation multiples could contract further if the company goes "ex-growth," said the report, citing the analyst who warned against heightened competition.

Morgan Stanley also highlighted NielsenIQ data that showed Celsius' year-over-year sales dipped in the last two weeks that were assessed, showing a 6% decline in the latest week.

Morgan Stanley has kept its ‘Equal Weight’ rating and $42 price target.

Sentiment on Stocktwits turned ‘bearish’ from ‘bullish’ a week ago. Message volumes rose to ‘extremely high’ levels from ‘normal.’

Last week, UBS analyst Peter Grom also cut the firm's price target to $39 from $45 with a ‘Buy’ rating, Fly.com reported. According to the analyst, sentiment about consumer staples continues to be bearish despite the sector underperformance compared to the broader market in recent years, with top and bottom line growth for majority of the group has underwhelmed compared to expectations.

Celsius is a maker of premium lifestyle energy drinks under its namesake 'Celsisus' brand.

Celsius stock is down 3.7% year-to-date.

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