Celsius stock shifted higher Monday, adding to recent gains after the energy drink company received an upgrade.
TD Cowen on Monday upgraded Celsius Holdings to buy from hold, noting improving sales data, The Fly reported.
Celsius' sales trends have improved, to flat sales from a high-single-digit decline in February, according to TD Cowen market channel checks and analysis. The firm expects to see continued improvement through the summer and believes that Celsius management has "course-corrected execution" on the brand.
Recent improvement efforts include strong innovation, nationwide expansions for retail exclusive products, and marketing efforts such as the "Live.Fit.Go" campaign to expand brand appeal. Meanwhile, the energy drink category has broadly rebounded, providing a positive backdrop for Celsius.
TD Cowen hiked its price target on Celsius stock to 55 from 37.
Stifel also resumed coverage of Celsius stock on Thursday with a buy rating, according to reports. The firm has a positive outlook for the energy drink category, which it says is benefiting from a reacceleration in the U.S. combined with international growth.
Celsius, in particular, has benefited from an improved growth profile following its $1.8 billion Alani Nu acquisition, which was announced in February and completed in April. Stifel also expects Celsius' brand trends to improve in the second half of the year.
Stifel has a 47 price target for CELH stock.
Celsius Stock Performance
Celsius stock swung 5.7% higher Monday. Shares ended Friday up 95% from their February low of 21.20, and have now rallied more than 65% so far this year.
Rival Monster Beverage climbed 1.3% on Monday to rebound above its 10-day line. MNST stock is extended, trading near record highs following a cup-with-handle breakout in March.
Celsius has a 21-day average true range ratio of 4.52%. Monster Beverage's 21-day ATR is 1.38%.
The average true range is a metric available on IBD's MarketSurge that gauges the characteristic breadth of a stock's behavior. Stocks that tend to make large jumps or dives in daily action, the kind that can trigger sell rules and shake investors out of a stock, have a high ATR. Stocks that tend to make more incremental moves have lower ATRs.
With the S&P 500 and Nasdaq now in a power trend, investors can buy stocks with ATRs up to 8%, though they should be wary of being too concentrated in high-octane names.
You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison
