Analyst Forecasts For Celsius Holdings, Inc. (NASDAQ:CELH) Are Surging Higher

By
Simply Wall St
Published
August 13, 2021
NasdaqCM:CELH
Source: Shutterstock

Celsius Holdings, Inc. (NASDAQ:CELH) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with analysts modelling a real improvement in business performance.

Following the upgrade, the latest consensus from Celsius Holdings' four analysts is for revenues of US$256m in 2021, which would reflect a substantial 36% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to surge 21% to US$0.18. Before this latest update, the analysts had been forecasting revenues of US$225m and earnings per share (EPS) of US$0.14 in 2021. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

View our latest analysis for Celsius Holdings

earnings-and-revenue-growth
NasdaqCM:CELH Earnings and Revenue Growth August 14th 2021

It will come as no surprise to learn that the analysts have increased their price target for Celsius Holdings 11% to US$95.67 on the back of these upgrades. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Celsius Holdings, with the most bullish analyst valuing it at US$105 and the most bearish at US$82.00 per share. With such a narrow range of valuations, analysts apparently share similar views on what they think the business is worth.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Celsius Holdings' growth to accelerate, with the forecast 86% annualised growth to the end of 2021 ranking favourably alongside historical growth of 42% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.5% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Celsius Holdings to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Celsius Holdings.

Analysts are clearly in love with Celsius Holdings at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as dilutive stock issuance over the past year. For more information, you can click through to our platform to learn more about this and the 3 other warning signs we've identified .

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

If you decide to trade Celsius Holdings, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted


Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.