Shares of Celsius Holdings experienced a setback on Friday as a decline in market share and sales prompted Bank of America to lower its ratings. The stock saw an 11% drop in morning trading, currently valued at $53.30. Despite this recent setback, the shares still demonstrate a 60% increase over the past 52 weeks.
In a report released on Friday, analysts at BofA downgraded Celsius from buy to neutral. However, they maintained the company's price target at $65 per share. While BofA's analysts acknowledge that sales are still strong and there are substantial opportunities for Celsius, they also highlight the unexpected decline in market share and velocity (dollar sales per points of distribution). The analysts raise the question of whether this decline is merely seasonal or indicative of a larger issue. Additionally, competition from industry giants Monster and Red Bull poses a challenge that may impact sales.
Celsius Holdings, headquartered in Boca Raton, Florida, specializes in the development, marketing, sale, and distribution of functional drinks and liquid supplements.