Aaron Davidson/Getty Images Entertainment
Celsius Holdings (NASDAQ:CELH) was singled out by Barron’s as a stock that has been oversold due to concerns about slowing growth trends.
The publication noted that the energy drink maker is getting its products on more grocery shelves, increasing online sales, and expanding overseas. “When the dust settles, expect the stock to get a boost.”
Celsius Holdings (CELH) was also credited with embracing the power of social media by collaborating with well-known fitness enthusiasts and health expert to boost brand awareness. That strategy has helped the company increase sales at gyms and fitness clubs by 30% in Q2. “There are some very loyal Celsius customers out there,” highlighted Maxim Group analyst Anthony Vendetti. “Some of them drink it every day, just like some people drink coffee every day,” he added.
While Celsius Holdings (CELH) has increased its market share this year, there have been some ups and downs in the most recent Nielsen releases. In the energy drink category, Bang outpaced Celsius Holdings (CELH) in the latest Nielsen update on scanner data at retail outlets in the U.S. For the four week-period that ended on August 24, Bang saw sales up 13.4% year-over-year vs. +5.9% for Celsius Holdings (CELH), +2.5% for Red Bull, and -2.5% for Monster Beverage (MNST) (not including Bang). Bang saw 14.5% year-over-year volume growth offset a bit by a 0.9% decline in price/mix, while Celsius saw its volume growth hit by an 18.5% decline in price/mix.
Shares of Celsius Holdings (CELH) are down more than 50% over the last 90 days and are about 70% below the 52-week high.
On Seeking Alpha, analyst Daniel Dunaevski is also bullish on CELH and thinks it could be an attractive takeover candidate for PepsiCo (PEP).
Source link
