Celsius Is Among 'Most Attractive' Opportunities In Food And Beverage, Analyst Says

Shares of Celsius Holdings, Inc. CELH continued their downtrend in early trading on Monday, after having lost around 4% last week.

The Boca Raton, Florida-based company is attractively positioned as a “high-growth functional beverage business” in a large addressable market and has significant scope of expansion, according to William Blair.

The Celsius Holdings Analyst: Jon Andersen initiated coverage of Celsius Holdings with an Outperform rating.

The Celsius Holdings Thesis: The company reported strong results for its second quarter and has upside to sales and earnings ahead, driven by significant market share gains in energy beverages, Andersen said in the initiation note.

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“In our view, the trend-right nature of the brand and long-term potential to serve new consumers and incremental usage occasions in the large energy drink category and, more broadly, functional beverage market combine to make Celsius one of the most attractive growth opportunities in the food and beverage industry,” the analyst wrote.

“While the 2024 price-to-sales multiple of roughly 7 and enterprise-value-to-EBITDA multiple of about 35 leave less margin for error, we believe a premium is warranted given the open-ended growth opportunity,” he added.

CELH Price Action: Shares of Celsius Holdings had declined by 1.54% to $159.53 at the time of publication Monday.

Image: Pixabay, Celsius