Why Jonah Lupton Is Pumped Up For Celsius Holdings

Jonah Lupton of Lupton Capital sipped on a Celsius Holdings Inc CELH beverage Friday with Benzinga "Power Hour" host Luke Jacobi and talked about the upside he sees in the stock.

Celsius Valuation: The analyst numbers for Celsius are way too low, Lupton told Benzinga. 

Celsius reported 101% revenue growth year-over-year in the first quarter, which was in line with the Nielsen scan data, he said. Nielsen provides insights into distribution, pricing and merchandising through its retail measurement services. 

The scan data of Celsius products is showing 200% year-over-year growth for the second quarter, while analysts are forecasting 77% year-over-year growth, Lupton said. 

Analysts are expecting Celsius to accrue $53 million in second-quarter revenue, he said. Lupton estimates that Celsius could reach $280 million to $300 million in revenue in 2021, representing around 125% year-over-year growth.

Monster Beverage Corp MNST is trading at about eight times sales and growing at a rate of approximately 15% year-over-year, he said. Celsius is growing six to eight times faster, which should justify a much higher multiple, Lupton said.

The Company Outlook: The same direct store delivery partners that helped to grow Bang Energy to $1 billion in revenue are working with Celsius, he said, adding that over 50% of all energy drink sales take place in gas stations and convenience stores. Celsius products are in 92,000 stores in the U.S., Lupton said.

Celsius is expanding its promotional efforts through influencers, athletes and other celebrities, he said. Other tailwinds include e-commerce acceleration and the reopening of workout facilities, he said. 

The company has plans to expand its product portfolio, he said, adding that it currently offers other beverage and powdered products, as well as protein bars. 

"The white chocolate cookies and creme is probably the best protein bar I've ever had," Lupton told Benzinga.

CELH Price Action: Celsius has traded as high $83 and as low as $10.29 over a 52-week period. 

The stock was down 1.17% at $72.37 at the close Friday.