Celsius Holdings Stock Slips on Lowered Price Target: Retail Stays Bullish

Shares of fitness and energy beverages maker Celsius Holdings ($CELH) were down 1.5% on Monday afternoon after the company received a price target cut from analyst firm Roth MKM, but retail sentiment stayed bullish.

Roth lowered its price target to $38 from $40 with a ‘Buy’ rating, TheFly reported.  

Based on recent data by Circana, formerly known as IRI Worldwide, energy drink sales continue to trend upward but the scanner data for Celsius was trailing the firm's estimate, the report said, citing the analyst.

“The company's higher promotional allowances versus Q4 of last year, including the effect of the revised Pepsi contract, should also have a worse-than-expected impact on Q$ revenue,” said the report.

Sentiment on Stocktwits improved to ‘bullish,’ the highest in the past one month.
 

One bullish user noted the volume might come under pressure in the coming days.

The participation ratio on the stock is high, showing a diverse set of investors on Stocktwits.

Last week, a JPMorgan analyst commenced coverage on the stock with an ‘Overweight’ rating, keeping price target of $37.00.

The brokerage noted “improving category trends and the stock's current valuation,” according to a media report. According to its analysis, Celsius Holdings' growth prospects remain strong despite a wider slowdown in the energy markets market.

The stock is down 46% year-to-date.

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