StockNews.AI
CELH
StockNews.AI
11 hrs

Analyst Downgrade Fuels Further Decline for Celsius (CELH) Shares Amid Sales Concerns and Investor Lawsuit – Hagens Berman

1. Celsius shares declined 58% year-to-date, pressured by a price target cut. 2. Analyst lowered Celsius price target to $38, forecasting weaker sales. 3. Concerns over PepsiCo distribution affecting fourth-quarter revenue negatively. 4. Shareholder lawsuit alleges misleading disclosures about sales and inventory. 5. Inventory buildup led to unsustainable sales rates, distorting performance metrics.

6 mins saved
Full Article

FAQ

Why Very Bearish?

The reduction in price target and lawsuit raise serious concerns. Similar situations, like with Enron, led to significant declines.

How important is it?

The analyst's downgrade and lawsuit significantly affect investor sentiment and valuation.

Why Short Term?

Immediate concerns surrounding sales and legal issues likely to affect stock quickly. Historical examples indicate rapid price adjustments post-negative disclosures.

Related Companies

PEPNASDAQ: CELH
SAN FRANCISCO, Jan. 17, 2025 (GLOBE NEWSWIRE) -- Shares of Celsius Holdings (NASDAQ: CELH), the energy drink maker already reeling from a 58 percent year-to-date decline, faced renewed pressure this month after a key analyst lowered its price target, citing concerns about sales and the impact of its distribution agreement with PepsiCo. This diminished valuation adds to the company’s woes, which include slowing sales, revised financial forecasts, and a shareholder lawsuit alleging misleading disclosures. On Dec. 16, Roth MKM, the investment bank, reduced its price target on Celsius shares to $38 from $40, according to Nasdaq.com. Nasdaq.com reported that analysts at Roth MKM pointed to anticipated higher promotional allowances in the fourth quarter compared with the same period last year. Critically, Roth MKM also suggested that the revised distribution agreement with PepsiCo would have a greater-than-expected negative impact on fourth-quarter revenue, according to Nasdaq.com. The analyst price target cut comes on the heels of a securities class-action lawsuit alleging that the company misled investors about its operations and prospects. Hagens Berman is investigating the allegations and urges investors in Celsius who purchased shares and suffered substantial losses to submit your losses now. Class Period: Feb. 29, 2024 – Sept. 4, 2024Lead Plaintiff Deadline: Jan. 21, 2025Visit: www.hbsslaw.com/investor-fraud/celh Contact the Firm Now: CELH@hbsslaw.com                                               844-916-0895 Celsius Holdings, Inc. (CELH) Securities Class Action: The complaint claims that Celsius failed to disclose several critical issues. These omissions include: excessive inventory shipped to PepsiCo beyond actual consumer demand; a projected decline in sales as PepsiCo worked through that overstock; unsustainable sales rates to PepsiCo that created a distorted picture of the company’s performance; and, consequently, overstated business metrics and financial forecasts. The company’s troubles began to surface on May 28, 2024, when Celsius shares fell nearly 13 percent following Nielsen data indicating a slowdown in sales growth. Analysts at the time raised the possibility of a significant sales contraction as PepsiCo reduced its inventory levels. Celsius’s stock suffered another sharp decline on September 4, 2024, dropping more than 11 percent after a company presentation revealed a shortfall of $100 million to $120 million in PepsiCo orders compared with the previous year. The presentation also disclosed that PepsiCo had carried several million excess cases of Celsius products over the past 18 months. These disclosures have prompted an investigation by Hagens Berman, a shareholder rights law firm. “We’re investigating whether Celsius deliberately concealed the extent of its inventory buildup at PepsiCo,” said Reed Kathrein, the partner leading the investigation. If you invested in Celsius and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now » If you’d like more information and answers to frequently asked questions about the Celsius case and our investigation, read more » Whistleblowers: Persons with non-public information regarding Celsius Holdings should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email CELH@hbsslaw.com. About Hagens BermanHagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.  Contact: Reed Kathrein, 844-916-0895

Related News