On Wednesday, Jefferies, a well-known financial services company, increased its price target on shares of Celsius Holdings (NASDAQ:CELH), a growing player in the global beverage industry. The new price target is set at $107.00, up from the previous $105.00, while the firm continues to recommend a Buy rating for the stock.
Celsius Holdings recently revealed its plans to broaden its market reach by launching products in Australia and New Zealand during the fourth quarter of the year in partnership with Suntory Oceania. This expansion aligns with the company's strategy to tap into mature markets that exhibit similar better-for-you (BFY) trends and where Suntory holds a significant market presence.
The analyst from Jefferies noted that the move to enter the Australian and New Zealand markets was anticipated due to the mature nature of these markets and their alignment with the BFY trends that Celsius Holdings capitalizes on. Additionally, the strategic partnership with Suntory, a company with a substantial market share, is expected to facilitate a smooth market entry.
The pace of the company's global rollout was also highlighted as being appropriate, with no signs of rushing or overextension. Jefferies forecasts that by the fiscal year 2028, Celsius Holdings' international sales could reach approximately $469 million, which would account for 11% of the company's total sales.
The decision to adjust the price target reflects the analyst's confidence in the company's growth trajectory and its ability to successfully execute its international expansion plans. The new target suggests a positive outlook on the stock's future performance as Celsius Holdings continues to navigate the global beverage market.
InvestingPro Insights
As Celsius Holdings (NASDAQ:CELH) sets its sights on international expansion with a promising entry into Australia and New Zealand, the company's financial health and market performance offer valuable insights. With a substantial market capitalization of $21.24 billion, Celsius Holdings stands as a significant player in the beverage industry. The company's robust revenue growth over the last twelve months, clocking in at an impressive 101.65%, underscores its successful scaling efforts and market penetration. This growth momentum is further highlighted by the company's gross profit margin of 48.04%, which reflects efficient operations and strong pricing power.
An InvestingPro Tip worth noting is that analysts anticipate sales growth in the current year, which aligns with Jefferies' positive outlook on the company's growth trajectory. Additionally, Celsius Holdings holds more cash than debt on its balance sheet, providing financial flexibility to support its international expansion plans and potential new product launches.
For investors seeking a more comprehensive analysis, there are 19 additional InvestingPro Tips available for Celsius Holdings, including insights into valuation multiples and earnings revisions. These can be explored in detail at Investing.com. To access these tips, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, further enriching your investment research toolkit.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.