Exane BNP Paribas (OTC:BNPQY) confirmed its Outperform rating and $58.00 price target for Celsius Holdings (NASDAQ: NASDAQ:CELH).
The affirmation comes in the wake of an announcement that Jim Lee, Deputy CFO of PepsiCo (NASDAQ:PEP), is set to depart the company to join Target as CFO on September 22.
The move is considered significant for both PepsiCo and Celsius Holdings, where Lee's future role on the Board of Directors (BOD) is now under consideration.
For PepsiCo, the departure of Lee is not anticipated to greatly impact the company's stock performance, as the firm is known for its strong leadership team. However, his exit is noted as a loss, given that he was seen as a potential future CFO for PepsiCo.
The situation at Celsius Holdings is different, as the company evaluates the potential replacement on its BOD. The choice of replacement is expected to provide insights into the preferred expertise PepsiCo believes will aid in driving growth for Celsius.
Celsius Holdings is recognized for its potential in leveraging various "self-help" strategies to enhance its performance. The addition of top talent to its BOD and management is highlighted as one of the key strategies for the company's growth. The current focus is on the skills the new BOD member from PepsiCo will bring, which could range from operations and international experience to marketing prowess.
In other recent news, Celsius Holdings is facing significant financial adjustments due to PepsiCo's inventory reduction, which is projected to impact the company's sales and EBITDA for the third quarter and the full year of 2024.
Meanwhile, financial firms such as Truist Securities, Piper Sandler, Jefferies, Roth/MKM, and BofA Securities have revised their revenue and EBITDA estimates and price targets for the company.
These changes reflect the anticipated impact of PepsiCo's inventory reduction on Celsius's revenue and margins. Despite these challenges, Celsius reported a 23% increase in total revenue, setting a record at $402 million, and a 30% rise in international revenue to $19.6 million. The company has managed to maintain its category growth leadership and expand its shelf presence amidst these challenges.
InvestingPro Insights
Amidst the corporate reshuffling at Celsius Holdings, the latest metrics from InvestingPro provide a snapshot of the company's financial health and market performance. With a market capitalization of $7.91 billion and a P/E ratio of 32.37, Celsius Holdings is trading at a valuation that suggests investor optimism about its future earnings potential. The company's impressive revenue growth of 56.5% over the last twelve months as of Q2 2024, paired with a substantial EBITDA growth of 613.9%, underscores its operational success and the effectiveness of its growth strategies.
Investors tracking the stock's performance will note that despite recent price volatility, with a 45.83% drop over the last three months, Celsius Holdings holds more cash than debt on its balance sheet and has liquid assets that exceed short-term obligations. These InvestingPro Tips highlight the company's financial stability and potential resilience in the face of market fluctuations. For those interested in a deeper dive, InvestingPro offers additional tips and insights, with 15 more tips available for Celsius Holdings at https://www.investing.com/pro/CELH, which could provide further context for the company's strategic decisions and future outlook.
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