Celsius Holdings is a company that makes drinks. They are doing very well and selling lots of their products in stores. The people who work at the store buy more of their drinks because they think people will want to buy them too. This means the company can make more money. But, as they sell more drinks in other countries, it costs a little bit more money for them to do that. So, they might not make as much profit as before. A man who knows a lot about companies thinks Celsius Holdings will keep growing and making more money, but maybe not as fast as before. He also says the company will spend some of their money on advertising to get even more people to buy their drinks. The price of one share of the company has gone down a little bit today. Read from source...
- The title is misleading and overstates the analyst's positive outlook on Celsius Holdings. A more accurate title could be "Celsius Holdings To Benefit From Cost Advantages And High Sales Velocity, But Faces Challenges In International Expansion".
1. Celsius Holdings has strong growth potential due to its continued expansion of distribution, increased shelf space in existing customers, and high retail sales velocity. This makes it a good candidate for long-term investment with a target price of $100 per share by 2024.
2. The company's favorable cost trends are expected to continue but may be offset by international expansion, which will require additional promotion and where margins are inherently lower. This means that the stock may face some volatility in the short-term due to increased marketing costs and lower profits in new markets.
3. Celsius Holdings is investing heavily in selling and marketing to maintain its momentum, which will result in higher S&M expenses as a percentage of revenue for the next several years. This may put some pressure on the company's earnings and valuation in the near-term, but it is necessary to sustain growth and compete with rivals.
4. The stock is currently trading lower by 4.72% to $77.77, which presents an opportunity for value investors who believe in the company's long-term potential. However, this may also indicate some uncertainty or concerns among investors about the company's ability to execute its international expansion plans and maintain profitability.
5. The analyst's price target of $100 per share by 2024 implies a significant upside of over 30% from the current level, which may seem optimistic but is based on reasonable assumptions and forecasts. Therefore, investors who buy the stock at its current price should be prepared for some volatility and possible downside in the short-term, but also have the potential to reap substantial gains in the long-run.