Celsius Holdings (CELH, Financial) is gearing up for a new phase of growth with its recent $75 million acquisition of Big Beverages Contract Manufacturing, a key move that sharpens Celsius's control over supply chain and innovation. This 170,000-square-foot facility not only accelerates product development but also provides Celsius the flexibility to quickly roll out new offerings. CEO John Fieldly emphasized that the acquisition is a “capital-efficient growth lever,” aligning with Celsius's aim to dominate the energy drink market with functional, better-for-you beverages designed to meet evolving consumer demand.
Despite short-term fluctuations, analysts are betting on Celsius's long-term growth story, with an average price target of $58. Recent updates from firms like Piper Sandler suggest cautious optimism, though others highlight the stock's current dip as a potential entry point for those with a long-term outlook. Celsius's proven track record in the lifestyle energy category has only strengthened with this acquisition, underscoring its commitment to becoming a frontrunner in the space.
Investors will have their eyes on Celsius's quarterly earnings report on November 6, with analysts expecting $0.05 per share. Celsius has consistently outpaced revenue estimates, with 23.4% year-over-year growth in the latest quarter. For those tracking the energy drink sector, Celsius's performance could offer insights into its potential to meet, or even beat, ambitious market projections.
