cemagraphics
Bank of America lifted estimates on Celsius Holdings (NASDAQ:CELH) after pointing to favorable Nielsen scanner trends in Q2.
The Q2 sales estimate on Celsius Holdings (CELH) from analyst Jonathan Keypour and team now calls for North America sales of $252M to mark 73% year-over-year growth. The firm still sees adjusted gross margin of 42.0% for the beverage company in the quarter and pushed up its estimate for adjusted EBITDA to $31M from $24M.
BofA kept a Buy rating on Celsius Holdings (CELH) and raised its price objective to $145.
BofA’s Buy rationale on the stock: “Celsius’ broader demographic appeal and positioning alongside new usage occasions should help them grow the category and take market share, particularly as they leverage their US distribution partnership with Pepsi to enter new doors and expand their presence on shelf. We see considerable sales and EBITDA potential as a result, with accelerating velocity signaling sales upside and additional operating leverage despite the highly competitive category.”
Shares of CELH rose 0.42% in premarket trading to $131.77 on Tuesday. The beverage stock is up 31% on a year-to-date basis.
