Stifel ups Celsius target to $93, says PepsiCo buyout makes sense

Stifel analyst Mark Astrachan raised the firm’s price target on Celsius Holdings (CELH) to $93 from $77 and keeps a Buy rating on the shares. The analyst lifted his sales and adjusted EBITDA estimates through 2024 to above consensus for the company following a deep dive build-up of its sales by segment. He expects strong sales and share trends from increasing brand awareness and meaningful distribution/shelf space expansion. Celsius should benefit from share loss by Bang, the number-three U.S. energy drink brand, reflecting reduced brand support and distribution disruption from terminating its relationship with PepsiCo (PEP), Astrachan tells investors in a research note. The analyst also thinks it “makes sense that PepsiCo seeks to acquire or distribute Celsius to replace Bang.”