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The company reported first-quarter earnings of $0.40, $0.21 better than the analyst estimate of $0.19, while revenue for the quarter came in at $260 million versus the consensus estimate of $218.31M.
Reacting to the report, Jefferies analysts raised the firm’s price target on the stock to $140 from $130, maintaining a Buy rating.
They said in a note that CELH’s solid Q1 clears a high bar, and the stock remains a top growth idea at the firm.
“We lift our ’23-25 sales/EBITDA ests. by an avg. of 8%/7% and PT to $140 ($130 prior) post CELH’s very (+) 1Q beat,” the analysts wrote. “Despite the high bar, CELH delivered better sales (+18% above Street) and EBITDA ($49M vs $29M), reflective of brand momentum and reach of PEP’s distribution system. Growth story remains well intact w/ (+) secular tailwinds, further runway for distribution gains, intl. story to come, strategic potential, and (+) valuation at 6.5x NTM EV/Sales.”
Wedbush analysts lifted their firm’s price target on CELH to $130 from $115, keeping an Outperform rating on the stock.
The analysts told investors that expectations were high and that the magnitude of CELH’s topline beat clearly exceeded the high bar. “As a result, shares will likely be rewarded handsomely today based on pre-market trading,” they said.
The analysts added that they now have an even higher conviction on the long-term growth opportunity for CELH.
