Need To Know: Analysts Are Much More Bullish On Celsius Holdings, Inc. (NASDAQ:CELH)

Celsius Holdings, Inc. (NASDAQ:CELH) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals. Investors have been pretty optimistic on Celsius Holdings too, with the stock up 23% to US$175 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

Following the upgrade, the most recent consensus for Celsius Holdings from its ten analysts is for revenues of US$1.2b in 2023 which, if met, would be a sizeable 31% increase on its sales over the past 12 months. The losses are expected to disappear over the next year or so, with forecasts for a profit of US$1.87 per share this year. Prior to this update, the analysts had been forecasting revenues of US$1.1b and earnings per share (EPS) of US$1.39 in 2023. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

Check out our latest analysis for Celsius Holdings

With these upgrades, we're not surprised to see that the analysts have lifted their price target 18% to US$188 per share.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Celsius Holdings' growth to accelerate, with the forecast 72% annualised growth to the end of 2023 ranking favourably alongside historical growth of 59% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.6% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Celsius Holdings is expected to grow much faster than its 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. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Celsius Holdings could be worth investigating further.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Celsius Holdings going out to 2025, and you can see them free on our platform here..

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.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.