Morgan Stanley warns of economic slowdown, Celsior stock falls
$Celsius Holdings (CELH.US)$ As for the stock price, it was suggested from industry sales data that the earnings growth of energy drink manufacturers has cooled down, and it has fallen the most in the past 2 years or more.
The stock price plummeted 13% on Tuesday, and about $2.9 billion disappeared from the company's total market value. Morgan Stanley analyst Eric Serotta (Eric Serotta) quoted Nielsen IQ (NielsenIQ) data and stated that Celsio's year-on-year sales growth rate in the US channel slowed during the week ending 5/18 compared to the beginning of the month. Serotta also said that the company's market share, excluding powder products, has declined in recent weeks, and sales ratios due to promotions have risen.
Morgan Stanley's Serotta wrote in her memo that Celsio's year-on-year sales growth rate for the week ended 5/18 slowed from 50% in the week ending 5/4 to 39%.
Wedbush's Pascarelli said that this month's and June trends will slow down, and improvements are expected in July due to retail store shelf changes.
Despite the sharp drop, Celsio's stock price has risen more than 50% this year, surpassing its peers in consumer-related stocks.
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