What Happened?

Shares of energy drink company Celsius (NASDAQ:CELH) jumped 6.1% in the morning session after JP Morgan analysts initiated coverage of the company with an Overweight (Buy) rating and a $37 price target. They highlighted stronger sales in specific areas, including U.S. energy drinks. The analysts also emphasized the stock's attractive price, noting it now trades at one-third of its March 2024 peak of $96.

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What The Market Is Telling Us

Celsius’s shares are extremely volatile and have had 34 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. 

The biggest move we wrote about over the last year was 2 months ago when the stock gained 14.9% on the news that Wall Street analysts provided positive updates on the company. Stifel observed improving sales trends, adding, "Energy drink trends should accelerate led by comparables, innovation, [and] pricing." Additionally, Piper Sandler's findings confirmed Celsius's popularity among teenagers. These updates are supportive of improved demand for Celsius's offerings while underscoring the company's strong positioning in the competitive energy drink market.

Celsius is down 47% since the beginning of the year, and at $31.26 per share, it is trading 67.5% below its 52-week high of $96.11 from March 2024. Investors who bought $1,000 worth of Celsius’s shares 5 years ago would now be looking at an investment worth $20,521.

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